A Study Of The Effects Of Introducing Foreign Strategic Investors On City Commercial Banks’ Performance

The financial services industry is the core of the economic development of China’seconomy, the reform of the financial services sector is the main driving force topromote China’s economic development. City commercial banks as an important partof the financial services industry in China, the reform, development and stability isthe power to promote China’s financial services sector and the whole chineseeconomic development. The introduction of foreign strategic investors is an effectiveway of reform of China’s city commercial banks, which was intended to attractforeign strategic investors, with the objective of absorbing foreign capital as anintermediary for introducing advanced intelligence and institutions that served thehigher purpose of improving the core competency of the city commercial banks.The methodology adopted covers such dimensions as theory, empiricism, quality andquantity, using the relevant data of57city commercial banks over the2002~2011period to assess empirically the effects of introducing foreign strategic investors oncity commercial banks’ various characteristics, such as introducing advancedintelligence and institutions. First, There’s a comparison for the City commercialbanks attract investment from the horizontal and vertical; Second, There’s an analysisfrom foreign ownership and the number of investors performance for the Citycommercial banks, and then is a robustness test, finally a package of policies issuggested.