Research On The Listing Of Western City Commercial Bank

Since the exploitation of western part of China in 1999, the economy of western bloomed fast. However, comparing to eastern part, there still exists some distance. Except self-drawbacks, such as area differences, short investment is another direct factor which leads to the week economy of Western part. Money investment is very effective for the development of area economy, especially in initial stage. Besides government support, the credit investment of commercial banks is the main way of western development. However, the Non-performing assets rate of station-owned commercial banks stays high, and the investment in western mainly focus on project constructions of main road, railway, oil, electricity, gas.City commercial banks,as the delegation of small size domestic banks, are named as THE THIRD GROUP。Since exploitation of western part of China, the city commercial banks in western part took part in construction of all fields and contributed a lot to the development of local economy. Meanwhile, they got unprecedent development in these financial activities through system innovation.However, in comparison with State-owned Banks, City Commercial Banks still exist some drawbacks, for example, lower level of overall asset quality,the heavy burden of bad quality asset,Inadequate capital, lack of financing way. Searching for a new growing mode becomes a challenge for City Commercial Banks in west of China in new century. According to me, there are three ways available. The first is making the use of area policy advantages to search for more policy support and helping governments push economy development. The second one is introducing strategic investors to enlarge asset scale. The third one is becoming listed in stock market. In the three methods, listed is obviously the most effective way.The main purpose of this paper is to find a optimized way for City Commercial Bank to realize listing, to analysis the impact brought by listing to corporate governance in consideration of policy and market environment, and to provide some suggestions for its development.The main research contents includes: First, the influence brought by listing. Through the research on Beijing Bank, Nanjing Bank, Ningbo Bank, in my opinion, listing can solve financing problem, highlight capital adequacy ratio, improve the structure of corporate governance and risk control, increase transparency of bank operation, finally enhance the fame of band and market value.Second, the choice of example. The main factorsⅠconsidered are the representativeness of the position and development state of the bank.Chongqing, as the station straightly-controlled city, Chongqing play an important role in western exploitation. The development of Chongqing delegates a lot the situation of western part. Chongqing Band—the biggest bank in Chongqing, built up in Sep.18th of 1996, through 14 years' development, has become one of the biggest city commercial bank in western part. From the structure of stockholders, national stockholder is still the biggest group, but also introduce other type of stockholders, such as foreign capital, private capital and so on. From Corporate governance structure, the hierarchy of Chongqing Bank less, Decision-making chain is short. In recent years, the Self-owned capital of Chongqing Bank can't catch up with the speed of its growing speed. Listing in stock market becomes the first choice for Chongqing Bank. So I choose Chongqing Bank as the example of city commercial bank.Third, the choice of listing mode and concrete strategies.When talking about the advantages brought by listed in stock market, the concern of how to realize it became central puzzle. Because of geological factor, City Commercial Banks have limitation in asset scale, profit ability and so on. Consequently, some of them can't achieve all the requirements of landing in stock market. So, in order to reach listed goal, they should connect their situation with policy, and choose legal way.Firstly, the listed-way of city commercial bank is a long process, choosing a right method is very important. It's not just because a appropriate way can shorten the listed time and lower listed cost. Through analysis, because of the limitation of location and reputation, city commercial bank can not stand to international threat and not fit to take too much burden of listed cost. In my mind, Mainland China motherboard capital market is the best Listing destination, the best method is applying for listed, and the best mode is single application.Concrete strategies include inner and external. Inner strategy include listing planning, perfecting corporate structure, clearing property right structure, standardizing equity management and so on; external strategies include building good relationship with media, enhancing publicity.Fourth, after listing, the activities the City Commercial Bank will face and their reactions. Making the use of SWOT method, I have analyzed the advantages disadvantages, opportunities and challenges of Chongqing Bank. The suggestions include speeding computerize financial services, transregional development, expanding Intermediary Business, strengthening core competence.The end makes conclusion of this essay.The main researching method is case study. The steps conclude Taking Chongqing Bank as an example to do some research in its financial statistic,analyzing the possibility of becoming listed, choosing the best mode, predicting development direction.The creation of the article concludes two points, the first is practicability, the second is its reference value for all city commercial banks.