In Banks To Introduce Foreign Strategic Investors

The thesis is structured by six parts: introduction, literature review, introduction to a case, case analysis, problems and thinking and conclusion.The first part is the introduction. This part introduces the reform process of Chinese banks, the reform idea of the regulatory authorities to improve the competitive strenghth of Chinese banks by attracting foreign investors, and the study of the results and problems in attracting investment.The second part is the literature review and analysis. This part proposes the standards of introducing foreign strategic investment, reviews the different voices in the process of strategic investment attraction, and reaches the viewpoint that the foreign investment attraction can promote the improvement in management of Chinese banks, but the attraction can not solve all the problems of Chinese banks.The third part is the case in which Newbridge Asia AIV III.L.P entered into Shenzhen Development Bank. Firstly, this part introduces the background of foreign strategic investment attraction by Shenzhen Development Bank. Sceondly, it describes the "marriage" process between Shenzhen Development Bank and Newbridge Asia AIV III.L.P. Lastly, it introduces a series of "New Deal" implemented by Newbridge Asia AIV III.L.P after dominating Shenzhen Development Bank.The fourth part is comparative analysis on operating conditions of Shenzhen Development Bank before and after the entering of Newbridge Asia AIV III.L.P. By the vertical and horizontal comparison of business development indicators of Shenzhen Development Bank before and after the strategic investment attraction, this part not only describes the parabolic-type development path shown by business indicators of Shenzhen Development Bank before and after the investment attraction, but also reveals that foreign strategic investors are more concerned about the indicator of"Return on Equity"of Chinese banks. From vertical and horizontal perspectives, this part analyses the result of the strategic investment attraction of Shenzhen Development Bank.The fifth part includes the problems and thinking. After the analysis of the investment attraction results in the short-and-long terms, this part summarizes that by attracting foreign strategic investment, Chinese banks should focus on corporate governance, business process reengineering, corporate culture construction, operational risk prevention and control, etc. to improve its core competence. Meanwhile, from the macro perspective, short-term finacial behavior of the foreign strategic investors should be prevented externally, and China's loopholes in financial supervision and tax should also be prevented internally.The sixth part is the conclusion. When Chinese banks attracts foreign strategic investment, they should improve operational efficiency, prevent and control risks, and construct the core competence as a long-term objective. At the same time, China should construct a sound legal and regulatory system as soon as possible to ensure the strategic foreign investment attraction to develop towards the desired objective.