State-owned Commercial Banks Introduced Foreign Strategic Investors

The sate-owned commercial bank (the SOCB) is the core of Chinese bank. The steps and results of the reform of the SOCB involve directly with strengthening China' s commercial banking, and influence the objective of the reform of China' s socialist market economy realization successfully. The reform of SOCB has been in progress for over 20 years, there have been some results, but its strength is very weak and many problems have not been solved. Along with the international integration of China's economy and finance, it's becoming inevitable for the SOCB to participate in international competition, looking for opportunities from all over the world to expand business and increase profits. As our promise for WTO, China's financial market will be open to the world after 2006. Along with this day, the competition must become more and more intense. The market share of city commercial bank and joint-stock commercial bank will be more and more great, and the oversea banks will be treated as the national banks. It is the status quo of SOCB that how to achieve severity property rights and improve corporate person management level, risk management, and how to blaze new trails. The problems can not be solved by ourselves in near future, and must depend on foreign help.So, based on the analysis of the motivation for the transnational M&A and combined with the case of Korea bank's transnational M&A after the financial crisis, this paper discusses the significance of SOCB introducing strategic investors from other countries. Then, this paper analyzes the way of the cooperation through separately acquiring motivation for the foreign investors and the SOCB. After explaining the imbalance theory and the game theory, this paper analyze the way of determining equity-acquiring price, which is market-comparing way...