The Research On The Risks Of Commercial Bank Multinational M&A In China

In recent years, with China’s accession to the WTO, China’s banking industry began opening up a number of banks in order to survive. Those banks are actively expanding to occupy their own markets and customer groups. The concept of "Global village" makes us slowly to accept the integration of the world. In order to get more customers and better quality resources, many banks begin to formulate the development of international development strategies and routes. Especially in the21st century, China’s banks began gradually moving towards globalization. Transnational establishing a new agency and cross-border mergers and acquisitions are two important means to achieve its strategic objectives, which cross-border mergers and acquisitions due to its relatively more advantage becomes the Bank’s primary means of external expansion.At present, many scholars at home and abroad focus on cross-border mergers and acquisitions of commercial banks. Majority of them are in M&A motivation, M&A performance, but less are in the risk. And most of the existing researches are for all of the risks in banks’ cross-border mergers and acquisitions, but lack of concerning on the financial perspective. This article focuses on the financial perspective to study the risk of cross-border mergers and acquisitions of commercial banks in China.This paper is divided into seven parts, each part is as follows:The first part is the Introduction. It describes the background, significance of this study, research ideas and research framework, and describes the main methods of research.The second part is Review. Without entirely consistent with the subject of research findings, the main narrative is the existing domestic and foreign research and carries out a comprehensive and objective evaluation.The third part is the theoretical analysis. It describes a few important concepts related to this article topic, as well as the theoretical basis of this article.The fourth part is the status quo of cross-border mergers and acquisitions of commercial banks in China and Comments. First it describes the status of China’s commercial banks to cross-border mergers and acquisitions in detail, refines analysis of M&A situation and summarizes several features of the development of cross-border mergers and acquisitions of commercial banks in China.The fifth part is the trigger factor and causing analysis of the financial risk of cross-border mergers and acquisitions of commercial banks in China. It divides as before cross-border mergers and acquisitions of banks mergers and acquisitions, in mergers and acquisitions, after mergers and acquisitions into three stages. It introduces the financial risks caused by factors, and then puts forward the macro and micro level analysis of the reasons for the emergence of financial risk.The sixth part is Case Studies-China Minsheng Bank’s cross-border mergers and acquisitions. It introduced the case analysis of the reasons, mergers and acquisitions of both sides, M&A process and risk analysis in turn. At last it evaluates the experience and lessons of the entire case.The seventh part is the proposal for cross-border mergers and acquisitions of financial risk in China’s commercial banks. The part of the analysis concludes that the needs to pay attention to the problems and recommendations on macro and micro levels, according to the preceding case.The main contribution of this paper is to analyze the risks standing on the unique perspective of the financial risk of cross-border mergers and acquisitions of commercial banks in China. In this paper, it summarizes the existing research and uses a relatively new case to analyze cross-border mergers and acquisitions in China’s commercial banks systematically and globally. It not only stands in the perspective of the financial risk in banks’ cross-border mergers and acquisitions to study, but also stands in the M&A global financial risk of the sort. The article makes out a number of specific proposals and measures, and expects to provide a reference for future cross-border mergers and acquisitions of commercial banks in China.