Research On The Strategies Of China’s Banking Cross-border M&A

With the continuous development of economic globalization, greaterinternational co-operation is enabled to be increasingly closer. So it has become aninexorable trend to implement the strategy of internationalization. For InternationalBanking, on the one hand, it is the broader space welcomed; on the other hand, therewill be a global stiff competition met. To suit for the economic globalization andmultinational banks demand, banks of the world have to adjust their industrialstructures by means of large-scale M&A (mergers and acquisitions) of domesticbanking industry, to enhance their international competitive levels and providecustomers with diversified financial services. Along with the speed-up proceeding ofopening to the outside world in our financial industry, our banking industry is facingfiercer and fiercer competition. Meanwhile, our banking industry mastered a firm andstable management for years have also accumulated certain strength, which laid agood foundation for our banking industry internationalization. For our bankingindustrial, multinational M&A is the only road to challenge the competition from thebanks of domestic and aboard, as well being internationalized. Therefore, theproceeding of banking multinational M&A is continuously accelerating.The chapter1of this article is Introduction. It mainly introduced the analyzedbackground and purport, domestic researches, researching content, researching wayand creative points. The chapter2is the Definition of related concepts and theoreticalbasis. According to the relevant academic researches, this chapter was to define theenterprises’ M&A, multinational M&A, banking multinational M&A, and toelaborate the theoretical basis of transnational mergers and acquisitions. The chapter3analyzes the international banking industry and the history of M&A of Chinesebanking. Meanwhile, it summed up the characteristics of M&A. The chapter4 analyzed Chinese banking multinational M&A judged from the inside and exterioraspects. The chapter5analyzed the two examples: one is the Industrial andCommercial Bank of China merged the Standard Bank of South Africa, the other oneis Minsheng Bank merged the United States Joint Bank. The author summarized thesuccessful and failed experience of M&A based on the content of the briefintroduction of M&A in two sides, the imputes and procedures of M&A. Based onthe above mentioned analysis, the author proposed several strategies and suggestionsattempting to promote Chinese banking industry and the success of multinational M&A. The chapter6summed up the research outcomes of this article, as well pointed outthe shortages existed in the research and limitations.