Research Of Overseas M & A Strategies Of Industrial And Commercial Bank Of China

The third wave of global banking mergers and acquisitions which started since early 1990 s has a great impaction on Chinese financial industry.After joining in the WTO,There are more and more opportunities and challenges for the development of Chinese commercial banks.Encouraged by the government policy of "going-out", the overseas business of Chinese commercial banks have developed rapidly through international M&A.This kind of success has drawn much attention.At present,the assets cale of Commercial banks of China has been expanded and its quality has been greatly improved.There are also many successful M&A cases overseas,but our overseas M&A in the banking sector as a whole lack related experience.When sort outpapers literature on bank M&A both domestic and abroad,the author found that majority of previous studies were about motivation and efficiency of acquisition,but studies on a specific M&A case were rather rare.The paper aims to study overseas M&A strategies of ICBC and put forward some recommendations for its overseas M&A in the future.This article starts from the theoretical foundation of commercial banks overseas M&A,which explained reasonably overseas M&A activities of ICBC.And then it does the analysis about the current situation of overseas M&A of ICBC and overviews its M&A strategies.Then it analyzes the present situation of overseas M&A of ICBC,including qualitative and quantitative analysis, the former summarizes overseas M&A history and characteristics of ICBC,the latter does a simple analysis on changes of previous years financial indicators of ICBC,in order to testing the efficiency of overseas M&A for its role in ICBC through the "Return On Equity(ROE)" model.The forth part of the article is the research of overseas M&A strategies of ICBC,including area selection,acquisition target selection,mode selection and other aspects of M & A.Finally,based on the above studies,the author concluded that the successful experience and inadequacies of ICBC in overseas M&A which can be learned or by other commercial banks.