The Impact Of Overseas Strategic Investments On Chinese Commercial Banks

From mid1990s, China-invested bank have open the gate of absorbing strategic foreigninvestors. Since2003, at the background of the new wave of reform that targeting state-ownedlarge bank, many China-owned commercial banks started to introducing SFIs too. Although someSFI retreated from China by transferring their ownership, there were still21China-ownededcommercial banks with SFIs. SFIs have helped improving the operation ability of those bankrelated by assisting and cooperating with them in areas including business conducting, humanresources optimization and risk control, etc.This thesis aims at analyzing the actual effects of SFIs on China-invested banks, especially onfinancial innovation and risk control through quantitative techniques. First, it systematicallyreviews the history and status quo of China-owned banks’ introducing SFIs, particularly thestructural characteristics and cooperative mode. Second, it compares the data of21banks thatintroduced SFIs and9wholly-owned banks from2006to2013to study whether the risk controlability of China-invested bank is enhanced due to absorbing SFIs, and the answer is yes. Finally,the thesis carries out empirical research about the relation between the innovation ability ofChina-invested banks and the joining of SFIs. All in all, banks introducing SFIs enjoyed betterability than the wholly-owned banks.