China's Banking Sector And Foreign Direct Investment Characteristics Of The Problem

Following with the increasing international competitiveness of China economy andthe implementation of china’s "going out strategy", China has become a new source ofoutward direct investment (ODI), and ODI is increasing continuously. In recent years, theODI of china has made a great breakthrough in the total amount, the region and the field ofinvestment. The banking sector’s outward direct investment is also of concern, althoughChina’s banking industry’s outward direct investment has just begun in recent years, but itsdevelopment speed and scale should not be underestimated. Now all the domestic banksface both opportunities and challenges. For example, the financial supervision strength, theexamination and approval procedures to enter the other banking market, these are all hardproblems of outward direct investment we are facing. Therefore, it is very necessary tostudy on the current situation of outward direct investment in China’s banking industry, theexisting problems and the opportunities and challenges, and finally to find some solutions.In this paper we analyzed in depth the current situation of the banking outward directinvestment of China from some areas including the scale, the location, the subject, the wayof ODI and so on. Based on the result of analysis, we will find the problems existed. Thenthis paper will take the ICBC as an example and introduce its successful investment casesand analyze the reason it succeed. Finally, I will give some advice and some relevantpolicy recommendations to help the improvement of the outward direct investment ofChinese banking industry. Specifically, this paper includes five parts in all.The first part is introduction, which describes the current situation of the relevantresearch home and abroad, the basic study method and possible contribution andinadequacies.The second part is the summarization of the banking of our country’s outward directinvestment. In this part, I will introduce the basic concept of the “banking” in our countryand the ODI of banking. Then, I will introduce the overall development level ofChina’s banking industry at present and the motives for the bank choose to invest outside.The third part is the analysis of characteristics and problems of China’s bankingindustry’s ODI. This part first introduces the history of ODI of China’s banking industry.Then I will analyze the current situation of the banking outward direct investment of Chinafrom the areas including the scale, the location, the subject, the way of ODI.Finally, according to the above results, I will find the existing problems in China’s bankingsector’s ODI.The fourth part is the case analysis of ICBC. First, I will introduce the the historyof ICBC’s ODI. Then, I will analyze the cases of the acquisition of Standard Bank andestablishment of the New York branch. Finally, I will summarize the reasons of its success.The last part is the conclusion and suggestions. In this part, I will summarize thecharacteristics and problems of China’s banking industry’s ODI, and give some advices.