The Research Of The Strategy Of The Localized Foreign Banks In China

Since the1980’s, the most significant characteristic of the developmentof finance is the faster and faster pace of the acceleration of it’s globalization.It also gives explanation to the foreign banks’ swarming into emergingmarket countries.In the past two years, the whole world saw the stirring times of crisiscaused by sub-primary debts, when the American and European investmentcompanies and commercial banks in succession broke down or merged, andthousands of millions of assets disappeared. On the other side, the marketsettled down to the importance of the real economy of the developingcountries, especially to the industry and economy of China.After China’s returning into the WTO, the foreign banks in China havebeen becoming more and more active. Most of them eagerly want to keep upthe pace with the racing development of China’s economy. What’s more,they want to play an important role in the vivid financial market of China.By the end of2008, there are totally28foreign solely invested bankswith116branches,2jointly invested banks,237representative offices and2foreign solely invested financial companies have been set up in China, withthe gross assets arrived to1,300billion YUAN. With the flying developmentof their business in china market as well as the Chinese government’sfulfillment of the promises on the outward opening of banking industry stepby step, China has without doubt became the most attractive target market of many international commercial banks. To seize the opportunity, foreignbanks have set up their completed strategies for the Chinese businesses.They rely on localized organization, effective management and initiativeproducts to compete with local banks, meanwhile to contribute to the wholelocal growing financial market of China.This article briefs on the achievements and existing situation of China’sbanking industry and the developing history of foreign banks in China. Withthe application of the strategy theories such as the five strength analysistheory, the SWOT analysis theory, the PEST analysis theory, the Value Chainanalysis theory, the Niche theory and the theory of public welfare marketing,the author tries to analysis the China economy, regulators’ governance,competition of the local banks, potential markets and foreign bank’s possiblechallenges and opportunities, and their strategies.Standard Chartered (China) Limited has been chosen as an example bythe author to illustrate how foreign banks can grasp the opportunity in China,understand the signal of the local economy and change itself. The article alsoput analysis on the on-time control and assessment of foreign bank’sstrategies in China, and forecast their trend of development.