Research On The Influence Of Chinese Banks’ Overseas Distribution On China’s Foreign Direct Investment

With the slowdown in the recovery of the world economy in recent years,the serious lack of new momentum for development,the prevalence of unilateralism,and the spread of the new coronavirus,the deterioration of external conditions has made Chinese companies’ foreign direct investment face greater challenges.my country’s financial industry has been further opened up,and Chinese-funded banks represented by the "five major banks" have accelerated their overseas operations and continuously improved their overseas financial services.According to manua l statistics,as of the end of 2020,my country had a total of 24 banks operating cross-border,with a total of280 branches established in 71 countries and regions around the world.Chinese banks have increased their support for Chinese companies’ overseas investment.It is an important proposition for my country’s financial opening to the outside world to study the characteristics of its overseas layout in different periods,whether it can improve China’s investment facilitation,and how to promote the gr owth of my country’s foreign direct investment.In this paper,the number of overseas branches of Chinese banks from 2002 to2018,the flow of China’s direct investment in 176 countries or regions around the world from 2003 to 2019,and the number of enter prises established by China’s direct investment in 176 countries or regions from 2003 to 2015 are as follows: research object.Firstly,it introduces the background and research significance of the article,and further elaborates the overseas layout of Chi nese banks based on the motivation behind the overseas layout of Chinese banks and the factors that affect China’s foreign direct investment,as well as the relevant literature research on the impact of Chinese banks’ overseas layout on China’s OFDI.and the theoretical basis of China’s foreign direct investment;secondly,it introduces the relevant theoretical mechanisms of the impact of Chinese banks’ overseas layout on China’s foreign direct investment;The number of overseas first-level branches of banks is used as an explanatory variable,and then control variables are added to construct an econometric model.The panel fixed-effect model is used to estimate the results of parameter estimation using relevant data.Finally,based on the results of the emp irical analysis,it puts forward policy suggestions to promote the overseas layout of Chinese banks and China’s OFDI.Through empirical research,this paper finds that the establishment of overseas first-level branches of Chinese-funded banks has greatly promoted the growth of foreign investment flows and the number of established enterprises by other Chinese-funded enterprises.The three paths of financial development with the host country to promote the growth of other Chinese-funded enterprises’ outbound investment flows and the number of established enterprises.Chinese-funded banks are not only very familiar with the operation of domestic parent companies,but also have a certain understanding of the defects of the host country’s capital market.Therefo re,Chinesefunded banks can help Chinese enterprises to obtain financing in the domestic capital market.When using bank loans and issuing corporate creditor’s rights for financing,overseas branches of Chinese banks are also helpful in obtaining syndicat ed loans and selling corporate bonds in the financial markets of many overseas countries and regions.From the perspective of different types of countries,the branches established by Chinese banks in developed countries,countries along the “Belt and Road”,and nonOECD countries can better promote China’s direct investment flow and the number of established enterprises in the country.