Listed Banks In China To Introduce Foreign Strategic Investors Cases And Empirical Studies

Since China's entry into WTO, larger foreign banks have accelerated their pace to Chinese market gradually, opening more branches in large cities. Some foreign banks have even started to set up branches in some medium-sized cities. Meanwhile according to our commitments when joining the WTO, foreign banks'business scope was broadened step. While increasing outlets and expanding the business scope, foreign banks took full advantage of their huge capital,advanced management capabilities, diversity of the business species, excellent services and good relationships with foreign multinational companies and so on, then many high-quality corporations and individual customers have turned to their side resulting disadvantage of Chinese banking industry in the field of high-end.In order to response to increasingly fierce competition in the banking industry and enhance the competitiveness of Chinese banking industry, our banking system reforms are being deepened in recent years. Our current reforms are mainly concentrated on the shareholding reform,the establishment of a modern banking enterprise system and the introduction of foreign strategic investors and so on. Amongst them, introduction of strategic investors is an important part. As of October 2007, there are 23 domestic commercial banks have introduced 35 foreign strategic investors. With the large number of foreign strategic investors introduced, the controversy about the effectiveness of the introduction of strategic investors is increasingly fierce. As the forerunner of Chinese banking reform, domestic listed banks'have a greater pace at the aspect of introduction of foreign strategic investors. Therefore, this article explains the necessity of introduction of strategic investors and the promotion of the foreign investors to our listed banks at the aspect of improving the companies'management and operational efficiency,constructing the core competitiveness and strengthening the national financial through introducing the theory of introduction of foreign strategic investors and analyzing the cases of introduction of foreign strategic outside.