Study Of Commercial Bank's Foreign Strategic Investors Shares

One of the most important banking business activities is to carry out equitycooperation with foreign financial institutions through the introduction of strategicinvestors. In order to conform to the trends of development of financial globalizationand economic globalization, many countries especially developing countries areopening up the banking sector, thus raising the strategic equity cooperation betweenfinancial institutions to a new level.With the deepening of China’s financial reform, the financial market is becomingmore and more open, foreign strategic investors staking in Chinese banks play adecisive role in promoting the reform of China’s banking industry. With theencouragement of The China Banking Regulatory Commission (CBRC), namelyChina’s banking regulatory authority, the major commercial banks complete thejoint-stock reform and strategic investment progressively. Practice has fully provedthat foreign financial institutions which carry out equity cooperation with Chinesebanks have brought forward positive effects in many aspects, such as transformationof management philosophy and improvement of corporate governance structure.However, large shares by strategic investors also caused a lot of controversy, it wasquestioned that Chinese banks are undervalued, state-owned assets are cheaply sold,and the domestic financial security will be threatened. Especially after the financialcrisis in2008, a large number of bank shares are sold by foreign strategic investors,therefore people have more justification for questioning the real motive of the foreignownership and the necessity for opening up of China’s banking industry.Therefore, to carry out researches about inter-bank strategic cooperation, to graspthe law of steady banking development in terms of absorbing the advanced experienceof foreign strategic investors, have a very important practical significance for bothChina’s banks and foreign financial institutions.In the context, I designed this article according with a logical sequence:motivation analysis of equity cooperation in domestic banking sector with foreign strategic investorsâ†'practice and impact assessmentâ†'dispute reviewâ†'empiricalresearchâ†'strategic choice and regulatory measures. At the same time combiningwith strategic agreement and cooperation reality, I figured out the path andmechanism of foreign strategic investment for the overall performance of Chinesebanks in the framework of the equity cooperation theory and empirical research,finally put forward relevant policy recommendations.