Comparative Analysis Of Internationalization Between Industrial And Commercial Bank Of China And HSBC

With the economic and financial globalization and the rise of China,international conditions of Chinese banks is mature increasingly,Especially,theglobal financial crisis has made a huge impact on the bank of Western developedcountries in recent years.Which is a great opportunity for China's commercialbanks to seize the international market.So far,the Industrial and CommercialBank of China has the most market value and assets in the china e ven theworld,It also has been ranked first in profitability of all banks for many years.Inrecent years,it has also accelerated its pace of internationalization.It is wellknown as a veteran of multinational,HSBC Bank has established internationallayout and unique experience of internationalization.Therefore,this paperselected domestic ICBC and foreign HSBC for their comparative study ofinternational development.By comparing internationalization process of the ICBC and HSBC,We foundthe necessity and feasibility of China's commercial banks to implementinternational strategy.By comparison study of the performance of internationalbetween two banks.This paper introduces a method of financial indicators andestablishes a return on equity model.After the measurement and comparison ofperformance of international of the two banks,we find that dilution of operationalrisk and improvement of cost management are important causes of performanceimprovement.Finally,it mades recommendations from international strategydevelopment,personnel training,merger integration of resources,risk aversion andbrand building these five aspects for the international development of China'scommercial banks,hope that can provide some help for internationalization ofICBC or other domestic commercial banks.