S Tudy On Locali Zati On S Tr Ategy For F Or Eign Banks InChina

Financial industry is the core of modern economy and banking industry is the base of Finance. With the acceleration of the integration process of global economy and regional economy, internationalization has become an irresistible trend for the revolution and development of global banks. Foreign banks entered the market of China in succession and have gradually got a firm foothold here, which makes a great contribution to promoting the revolution and development of China’s Financial industry.After China’s accession to WTO(World Trade Organization), its Financial sector has been gradually opening to overseas. In the meanwhile, a plenty of foreign banks have seen the great opportunities and potential to develop in the market of China. However, being controlled and supported by the state, Chinese-funded banks still enjoy advantages in their market share. Therefore, for foreign banks to survive and develop in such a competitive environment, their primary task is to find out strategies suitable for their development in China and to make proper adjustment according to the actual conditions and environment.In the numerous foreign banks in China, HSBC(Hong Kong and Shang Hai Banking Corporation) stood out from the crowd and became an international financial bank enjoying global reputation as well as the largest foreign bank in China. Having gone through so many financial crisis, HSBC has not only tenaciously survived but also caught the development opportunities after these crisis. The localization strategy of HSBC is very impressive in its striking success in China, but there is also a space for its optimization.This thesis takes HSBC(China) as the example for the case analysis. By adopting a combined method of literature research and case study, the author makes an in-depth internal analysis of HSBC from the perspective of internationalization strategy with the tool of SWOT analysis. And the tool of PEST analysis is applied to analyzing the external environment of Guangdong Province of China. The author tries attempts to figure out the reasons for the success of HSBC’s strategic choice and puts forward some suggestions for the optimization of these strategies with the hope to provide enlightenments and reference for Chinese-funded banks to develop abroad and start internationalized business.