Chinese State-owned Commercial Banks "going Out" Strategy Research

China has implemented the strategy of "going out" for seven years. During these years, through the oversea investment and internationalized operation, some Chinese enterprises in sector of manufacture and transportation have obviously improved their competitive capabilities, which have extremely enhanced China's initiative in the process of globalization. Meanwhile, alone with the termination of five-year's post-transition period of accession to WTO, under the background of the incessant optimization and perfection in internal financial mechanism, people's attention to financial sector, especially to the banking sector, have diverted gradually to how to promote the commercial banks' "going out" and participation in competition in international market, from how to bring foreign banks in reasonably to protect the healthy development of the local banks. Under the circumstances, discussion on the strategic choices of "going out" of the state-owned commercial bank (SCB), the dominant competitors in domestic market, is of great importance in real-life environment.Firstly, this paper defines both the "going out" of commercial banks and the pattern of banks' oversea organization, and stresses the researches on the theoretical frame of "going out" of commercial banks. In addition, through the analysis of the data in annual report of five SCBs, this paper introduces the current condition and features of the SCBs, probes into the necessity of the "going out" of the SCBs.After that, this paper presents the internal and external barriers which restrict the "going out" of SCBs in detail, whereby we can realize something as follows: great discrepancies exist among different countries' market restriction on foreign commercial banks, and the most vital factors influencing on the "going out" of China's SCBs are the market accession about the operating pattern and the stipulation in business line. Therefore, China's SCBs should adopt the differentiation strategy in terms of different countries and conduct "going out" with various patterns. Moreover, this paper concludes the course of internationalized operation of multinational banks, the experiences of "going out" of Singapore's three commercial banks and the process of HSBC's global expansion, so as to elicit four enlightenments followed. Firstly, choose suitable path to develop the international operation. Secondly, conduct "going out" accompanied by "going out" of enterprises. Thirdly, the reforms of financial system promoted by governments play an important role on the "going out" of SCBs. Finally, the results of "going out" of SCBs are determined by the economic strength of countries extremely.At last, this paper put forward the strategic path choice of SCBs' "going out", which is a combination of choosing the merger & acquisition as the chief method, selecting the Asia as the principal expending area and the international financial centers as well as the trading partner as optional area, and implementing the differentiated operation based on each SCB's condition. Besides, this paper presents the practical policy suggestion with regard to boosting strength of SCBs, deepening the reform of domestic financial mechanism and creating the sound macro-environment for "going out" of SCBs.The creative points of this paper are as follow. Firstly, this paper utilizes data from the up-to-date annual reports of five SCBs to analyze the current condition and features of their "going out", so as to make the analysis more integrated, material and convictive. Secondly, this paper shows the introduction of "going out" of Singapore's commercial banks, another emerging market country just like China, when uses the experiences of foreign banks' global operation for reference, and the introduction makes the reference more effective and valuable. Finally, the writing pattern of this paper, characterized by basing on development of SCBs "going out", by relying on analysis of internal and external barriers and by guiding by experiences of foreign banks, make the path choice and policy suggestion delivered in last part of this paper functional and realizable.