A Research On The Path Selection Of Internationalization Of China’s Commercial Bank

With the deepening of the economic and financial globalization，China’s economy andfinance are in full speed into the international market and playing an increasingly importantrole in the new round of global financial pattern adjustment. As commercial banks are themain body of financial market in China, they are playing an important role in theinternational financial market competition. The rising power of national economy needs theinternational banking system to match with it, and China’s real economy "Going Out"strategy needs Chinese banks to provide cross-border financial services to promoteinternational development demand. Financial crisis and the speeding up of theinternationalization of RMB provide an favorable opportunity for our country bank, thestrategic transformation for banks to enhance their competitiveness need to accelerate thepace of international expansion. Overall, the internationalization of China’s bankingindustry has become an irreversible trend. The internationalization of banks have two mainpaths: Green Field Investment and cross-border mergers and acquisitions, which one shouldChinese commercial banks to choose? This paper attempts to explore the basis for selectingdifferent paths on the base of summing up the experiences of the internationalization ofmultinational Banks at home and abroad, to provide some references for walking on thepath of internationalization of China’s commercial banks.This paper firstly describes the background and significance of the selected topic,reviews the relevant theoretical literature; then defines the two kinds of bankinternationalization path, and analyzes their characteristics and advantages anddisadvantages; Then, the paper analyzes the multinational Banks internationalization pathselection situation in developed countries, and summarizes the experience ofinternationalization of multinational Banks in developed countries and use Citibank, HSBCas an example to summarize their experience in the internationalization path selection,including the enlightenment to China’s banking sector. followed by a summary analysis ofthe current situation of China’s commercial bank internationalization path selection, anoverview of each big commercial Banks and the existing problems. The focus of this paperis about the influence factors of China’s commercial bank internationalization path selection,There are three aspects including the Banks themselves, the target market and theenvironment, the characteristics of the path itself, dividend15dimensions. It studies theinfluence factors of two kinds of path selection,which refers to China’s commercial bankGreen field investment and cross-border M&A. The paper put forward and constructsChina’s commercial bank internationalization path selection standard of judgment anddecision-making system. The fourth chapter analyzes several representative Green field investment and cross-border M&A case, to verify the operability and practical significanceof the decision-making system, and then measures and compares the internationalizationpath selection of China’s five largest banks. Finally summarizes the main conclusion of thepaper, and gives some suggestions.In this paper, the path selection refers to the ways of entering the target market in theprocess of the internationalization of commercial banks, it includes the cross-border M&Aand Green field investment(also called new investment, green-field investment) to getoverseas operators. The paper mainly studies the selection of two kinds of path.