Analysis On Expected Effect Of Foreign Strategic Investors Entering China Banking Industry

The essay analyzes the strategy—China banking industry introduces foreign strategic investors and exchanges the ownership of a share for skills—with finance liberalization development strategy theory and concludes that China banking industry can not blindly rely upon foreign strategic investors. Opening-up of China banking industry is not an endogenetic production of domestic finance development and deepening to some degree but a"overtaking"strategy implemented in the situation—our financial system is faulty and close to the domestic investors and financial division phenomenon is comparatively serious—with more ectogenic character. The strategy of introducing foreign strategic investors is mainly with the motivation to solve crisis by administration arrangement and lack of the commercial motivation to chase profit. The logic of finance ectogenic opening-up indicates that the opening-up of China banking industry will be faced with more financial risks. Therefore, private-owned capital should be properly introduced into domestic banking reformation and be paid equal attention with foreign strategic investors. Thus, competition state of mutual restriction will be formed. The essay puts forward the corresponding policy advice in the end.