The Research On Performance Of The Overseas Mergers And Acquisitions Of Chinese Banks

With nearly 20 years marketization of interest rate reform, it makes that our country's commercial banks deposit and lending spreads gradually reduced, the traditional profit model is facing a huge impact, and fierce competition between the banks increasing seriously. What's more, to some extent it weaken the banks management ability, forcing those commercial banks to find new profit growth point and open up new markets. Since 2001, China formally joined the WTO,especially after 2006 with the end of the five-year transition period, foreign banks get full market access, and begin to enjoy the national treatment as Chinese banks,they have set up many branches in China. Chinese banks inevitably face the impact and challenges of economic globalization, which makes the domestic financial market competition more intense and brutal. The Chinese non-financial enterprises as a pioneer in the development of overseas business spawned a large number of cross-border financial services and product demand. Under the pressure of internal and external competitive environment, and with their own development and growth of demand, Chinese banks keep a positive attitude to involve in overseas mergers and acquisitions, to accelerate the pace of expansion of international overseas markets to seek new profit growth point. In this research background, this article select China Construction Bank m&a Bank of America Asia case to analysis, for the explore of the overseas performance of Chinese banks.This paper uses the event study method and financial analysis, to study the China Construction Bank m&a events during the armouncement the capital market reaction and the changes in financial indicators. In the first part of this paper, it elaborated the article's research background and significance, literature review,and expected innovations. The second part, this paper introduces China Construction Bank m&a Bank of America Asia, and the motivations ofm&a, the plan and the whole process. The third part, this paper using event study method and financial index analysis method to study m&a market performance and financial performance. In addition, the paper use the "soft asset" to analyze the CCB's overall performance.The analysis results show that, the performance in the market, investors are not optimistic about this overseas m&a event, this event caused investors to negative emotions, reduces the capital gains of the shareholders and equity value because investors think the acquisition event risks outweigh the benefits. In terms of financial performance, this study use the capital safety, liquidity, profitability, operation ability, devebpment ability these five indicators to analyze the financial performance. And this financial performance analysis of CCB (Asia) is divided into two parts: the first phase of 2006-2008, and the second phase of 2009-2013.The results show that although the performance ofpre-integration is unsatisfactory,the performance of post-integration improve to a new level. In addition, the improvement of management style, and the increase of customer list, talent cultivation and information technology, innovation and promote the change of these soft assets to China construction bank (Asia) has brought the positive effect of comprehensive benefit.Therefore, this article concludes that, although market performance is poor,financial performance presents fluctuated upward, on the whole it realized the merger synergies of m&a. Finally, according to this case, this paper summarized enlightenments of CCB m&a Chinese banks, it propose Chinese banks in the process of m&a must be careful in selection of m&a area, selection of suitable acquisition target, and carry out the development of effective integration policies,and to focus on implementation international development strategy.