Analysis Of Development Status And Business Strategy Of China’s Foreign Banks

After China’s accession to the WTO, the banking industry is faced with opening to the outside world. After the five-year transitional period of banking sector, "the People’s Republic of China Foreign Bank Act of administration"began to implement in December 2006. In accordance with the WTO commitments, China’s banking industry officially open in an all-round way. Foreign banks will enjoy national treatment. In 2015, China made a new revision of the regulations, which further eased the requirements of setting up new branches,time to carry out specific business and profitability of foreign banks. As a result, foreign banks have a bigger development space in China.By the end of 2015, foreign banking financial institutions operating in China has more than 1000. However,with the increased number institutions and loose policy regulation foreign banks are facing increasingly fierce competition. Faced with increasingly complex business environment,foreign banks need to develop suitable strategy which based on their own situations. This will promote the healthy development of their own future.This paper reviews the relevant research literature, and on this basis to discuss. First, this paper summarizes China’s foreign banks from three aspects, including spatial distribution, management and supervision, which outlines the development situation of foreign banks in China. The spatial distribution of foreign banks in China has gradually radiated from the eastern coast to the Midwest. In addition to their own operating indicators gradually increased, foreign banks continue purchasing shares of the Chinese capital banks. At the same time, China’s government regulation of foreign banks has also been gradually relaxed. Then, on this basis, this paper analyzes the advantages, disadvantages, opportunities and threats of foreign banks by using SWOT analysis method,which points out the present situation of the development of foreign banks in China. Combined with foreign banks’management heterogeneity strategy, this paper analyzes the differences, integration and dynamic management strategies of foreign banks in China. Based on its own situation, each foreign bank chooses a different business strategy. For more in-depth analysis, the paper uses the SWOT analysis method to carry on the case analysis. This paper makes a detailed analysis of the development status of Nanyang Commercial Bank (China) Heifei branch from four angles and summarizes Heifei branch’s business strategy from three aspects.Finally, based on the business environment of foreign banks in China and the results of the case analysis, this paper gives foreign banks three piece of advice from the angle of taking advantages, compensating the disadvantages,grasping the opportunity and dissolving the threat. According to their own actual situation, foreign banks should give full play to the advantages of talent and capital and improve financial innovation ability. Also, foreign banks should seize the opportunity of the policy, expand the network layout and improve market share in order to make up for the deficiency. By expanding the scope of business and strictly controlling the bank risks,foreign banks can form the core competitiveness and effectively resolve the crisis.