Research On The Cross-Border M&A Strategy Of China's Commercial Banks

With the increasing of economical globalization and the development of China's open degree,domestic capital began to go global,more and more Chinese companies enter overseas markets,which provides a great opportunity for Chinese commercial banks to develop overseas business.Policy strategies such as"One Belt And One Road" continue to push for China's Banks expand overseas to provide suitable service.These years in our country,on the other hand,profound changes have taken place in financial ecological environment and operational mechanism,interest rate liberalization and the increasing of the Internet financial have brought profound impact to the commercial Banks in our country.At the same time,electronic?business integration?internationalization is the development direction of many international Banks,but there are still many problems such as low bank profitability,small scale and the high proportion of non-performing assets.With the increasing open degree of China's financial market,foreign-invested banks can expand their business in China,China's commercial banks faced huge challenges.Therefore,our commercial bank in our country must conform to the situation of the progress of The Times,seizing the chance to accelerate the pace of globalization to enhance competitiveness and cross-border M&A is an effective method of overseas expansion,thus the research project has urgent practical significance.In this paper,the integrated use of case studies and empirical research method is used to study the core subject:the Chinese commercial bank cross-border M&A.The first part introduced the research background and significance of this article,the studying methods and possible innovation,besides,the available research theory and literature about this topic reviewed by experts and scholars all over the world.The second part focused on the commercial Banks in our country,analyze the feasibility and necessity of cross-border M&A in Chinese commercial banks,then describe the strategic significance of cross-border M&A.The third part firstly analyzed the two main modes of our country commercial bank cross-border mergers and acquisitions,namely,set up branches and direct cross-border mergers and acquisitions,secondly combed the history and the current situation of Chinese commercial bank cross-border M&A,then summarize the main characteristics of Chinese commercial bank cross-border M&A.The fourth part has two parts to study,an case study of China merchants bank takeover of Hong Kong wing lung bank and the empirical research.In the case study part,first of all,reviews the main process of China Merchants Bank's cross-border M&A,then analyze the specific M&A case including the background and process before the M&A,target selection,the merger integration and the practical significance of the M&A.Secondly,an empirical analysis has been made on CMB's situation after the merging of Wing Lung bank according to net assets yield model,found that the financial efficiency has significantly increased after the M&A activity.Finally on the basis of above research,some reference opinions about the cross-border M&A strategy choice of Chinese commercial Banks have been put forward,in the hope of the globalization of our country commercial banks manage to be more steady and reasonable.