Research On The Entry Mode Choice Of Foreign Banks Into China

Following the process of globalization and financial liberalization all over the world, the cross-national investment in banking business sees the most development. Because of its special role in the national economy. banking industry investment attracts attention of the host countries. Currently, a number of researches have been done on the multinational investment of banks. There are usually two ways when the multinational enterprises enter a foreign market, one is Greenfield investment, and the other is acquisition. It is a critical issue to choose the fittest way when facing different markets. which concerns not only the company the investors from other countries, but also the domestic companies and the government.From the perspective of International banks overseas investment choice, this thesis studied the way through which the foreign banks entered Chinese market, and tried to discuss the different influence and the best strategy among them.Generally speaking, the host countries prefer acquisition rather than Greenfield investment. In the case of China. the emerging of foreign banks brings both great opportunities and grave challenges. For example, the commercial banks could elevate their operating aptitude improve their service with the foreign investment, while the qualified customers and the human resource are likely to be drawn to the foreign banks. As a result, it is the responsibility of our government to enact some measurement with positive attitude. At the same time, our commercial banks should foster strengths and circumvent weaknesses, in order to rise to the challenge of economic globalization, and find out the optimal way to invest overseas. Our investment abroad has constantly increased due to the recent policy. Influenced by the global economy crisis from America, the world is facing a series of change, such as dollar-devaluation, global inflation, slowing down of some major economies' development, relative rise in value of RMB and drop of foreign investment's price. As a major power with limited resources, the surprisingly development of Chinese foreign investment will undoubtedly provided an opportunity for our banking multinational development. This thesis, based on the research of entry mode, will be worth with theoretical values.