Research On The Impact Of "Going Global" Of Chinese Banks On The Performance Of Chinese Overseas Subsidiaries In RCEP Region

With the continuous and in-depth implementation of China’s opening to the outside world,Chinese enterprises have gone abroad to invest and build factories overseas.In 2020,China is the world’s largest foreign direct investment flow country.The scale and proportion of current income reinvestment in that year’s foreign direct investment have both increased compared with last year,and the proportion of current income reinvestment has reached a record high.However,at the same time,overseas subsidiaries of Chinese enterprises are facing the impact of the economic downturn environment and various international emergencies in the world.At home,they are also facing the superposition of major reforms and adjustments in the new development stage.At the same time,due to the lack of core technology and advanced management and business model,Chinese enterprises still generally have the problem of "large but not strong",and the rate of return on foreign investment is also declining year after year.Since the 19th national congress,China has thoroughly implemented the basic national policy of opening to the outside world,and Chinese banks have also increased the pace of "going global".At the same time,with the formal entry into force of the regional comprehensive economic partnership agreement(RCEP),the free trade zone with the largest population and the most potential in the world has been officially launched,which is a good opportunity to improve the overseas business performance of Chinese enterprises.In this context,this paper explores the impact of "going global" of Chinese banks in RCEP region on improving the operating performance of overseas subsidiaries of Chinese enterprises,which not only provides a marginal contribution to the theories related to overseas business and operation of commercial banks,but also provides a useful supplement to the theories related to improving the revenue capacity of overseas subsidiaries of domestic enterprises.At the same time,explore how to take advantage of the RCEP to expand financial opening,strengthen the supporting role of Chinese banks for overseas subsidiaries of Chinese enterprises in non-financial industry,and improve their business performance,which is of great significance for deepening overseas bank enterprise cooperation,promoting the transformation of overseas subsidiaries of Chinese enterprises to high-quality development stage,and realizing domestic and international double cycle.Firstly,this paper combs and summarizes the existing literature from three aspects:the economic effect of "going out" of Chinese banks,the influencing factors of the performance of overseas subsidiaries of Chinese enterprises and the economic effect of China’s foreign direct investment in RCEP region.On the basis of synthesizing the views of many scholars and reviewing relevant theories,This paper summarizes three impact mechanisms of "going out" of Chinese banks on improving the operating performance of overseas subsidiaries of Chinese enterprises.First,provide financial support and reduce financing costs;Second,optimize resource allocation and improve investment efficiency;Third,reduce information asymmetry and improve enterprise management.Based on these,it puts forward the research hypotheses of this paper:first,the "going out" of Chinese banks helps to improve the operating performance of overseas subsidiaries of Chinese enterprises;Second,the role of such promotion is higher in developing countries than in developed countries.Secondly,this paper introduces the development status of "going global" of Chinese banks,focuses on the statistics of the distribution,operation status and entry mode of Chinese banks’ branches in RCEP region,and it is demonstrated that the branches of Chinese banks in RCEP region have promoted the local economic development and improved the business performance of Chinese enterprises through RMB clearing,strengthening financial supervision cooperation and providing financing services for the local market.In addition,This paper also analyzes and studies the existing problems of Chinese enterprises through the distribution and business performance of overseas branches of Chinese enterprises in RCEP area.Then,using the fixed effect model,taking,the asset scale of overseas branches of Chinese banks as the core explanatory variable and the operating income of overseas subsidiaries of Chinese enterprises as the explanatory variable,this paper makes an empir cal study based on the data of 14 countries in RCEP region from 2011 to 2020.The results show that the expansion of the asset scale of Chinese banks’ branches in RCEP can effectively promote the improvement of the operating income of overseas subsidiaries of local Chinese enterprises.This conclusion is still valid after endogenous test and robustness test.This paper further divides the country sample into developed countries and developing countries,and explores the impact of "going global" of Chinese banks on the operating performance of overseas subsidiaries of Chinese enterprises under different degrees of development.The results show that "going global" of Chinese banks can promote the operating performance of overseas subsidiaries of Chinese Enterprises in both developed and developing countries,and the promotion effect in developing countries is higher than that in developed countries.Finally,based on the combination of theoretical analysis and empirical test,this paper puts forward several targeted policy suggestions:first,strengthen financial opening,encourage Chinese banks to actively develop overseas branches,and let Chinese banks give full play to the role of supporting and promoting the business performance of overseas subsidiaries of Chinese enterprises.Second,strengthen business innovation,enrich the overseas business types of Chinese banks,and improve the service quality of Chinese banks,so that Chinese banks can better meet the various financial needs of overseas subsidiaries of Chinese enterprises.Third,we should vigorously improve the operational capacity and anti risk ability of branches of Chinese funded banks in developing countries.Fourth,take advantage of the advantages of RCEP free trade zone to strengthen financial cooperation with the host country at the government level.The innovations of this paper are as follows:first,the innovation of the research object.Taking the operating performance of overseas subsidiaries of Chinese enterprises as the research object is of great significance for studying the transformation of overseas subsidiaries of Chinese enterprises from high-speed development to high-quality development.Second,innovation of research perspective:Based on the formal signing and entry into force of RCEP,this paper combines macro and micro perspectives to explore the impact of "going global" of Chinese banks on the performance of overseas subsidiaries of Chinese enterprises under the background of financial opening,which provides a useful supplement for exploring how to improve the operating performance of overseas subsidiaries.