Analysis On Influencing Factors Of OFDI By Chinese Banking

Currently, in the situation of economic globalization and financial liberalization, outward direct investment in the banking industry is increasingly becoming the focus of research in academic field. In recent years, the external environment facing the banking sector has undergone dramatic changes. Outward direct investment in Chinese banking sector presents the new features. It has become a new force of some international influence in financial industry. It is urgent to strengthen the influencing factor research of Chinese banking.In this paper, theoretical analysis and case study method have been both used. First from the theoretic point, expand OIL paradigm, and explain the influence factors of Chinese banking sector's outward direct investment at various levels; then concretely anlysis them combined with, aiming at exploring influence factors of outward direct investment on China's banking industry and analyzing the advantages. We can conclude that, the current theory about the banking sector's foreign direct investment lags far behind the practice; Chinese national conditions and characteristics can not be overlooked when Chinese banking sector invests abroad, namely, the primary factor which shoule be considered consider is the Chinese system and cultural background, which is the deep advantages hidden behind in economy and politics. To strengthen the advantages of Chinese banking sector's "going out", four suggestions are proposed based on the previous analysis:First, increase ownership advantages of outward direct investment in Chinese banking sector, based on classical theory: Second, learn the advanced experience of foreign direct banks, implement the strategy combining "bringing in" and "going out"; Thirdly, the strategy of sound operation and sub-level expansion should be taken; Fourth, improve the financial and legal environment, support small and medium banks to invest abroad. At present, we should take different strategies according to different development trends of banking sector's related subjects. Since 2003, China's banking sector carries out a series of positive and effective reform and innovation, the chinese-funded banks increase significantly in corporate governance, profitability and competitiveness, and other aspects. By the end of 2006, Chinese banking sector opens roundly, foreign banks"'coming in "and Chinese-funded bank's "going out" speed up. Market competition and the composition of China's banking sector has undergone tremendous changes, especially after the global financial crisis, the world banking reshuffles. Undeniably, currently, the implementation of "going out" strategy for Chinese-funded banks is still a long way. For the issues related to Chinese banks "going out", Little research has been conducted. In this context, a systematic study of influence factors of out foreign direct investment by Chinese banks, has some theoretical and practical significance.