The Joint-Stock Reform Of The State-Owned Commercial Banks Based On The Financial Security

The reform of the Chinese state-owned commercial banks have been implemented so many years, such as, the capital injection, stripping non-performing assets of banks basing on the establishment of management companies, their deep-seated problems have still not been effectively resolved, property rights remain in a state of unclarity. In this case, since 2003, Chinese state-owned commercial banks have accelerated the pace of the joint-stock reform, the introduction of foreign strategic investors is particularly notable. At the same time, many commercial banks have also joined to the introduction of foreign strategic investors in the ranks of the past. Thus, in the context, it is of both practical significance and the theoretical significance to study the joint-stock reform of state-owned banks based on the financial security.This article is divided into four parts. The first part is the theoretical basis of this article. Section I outlined the property rights theory, and deeply analyzed the relationship between joint-stock reform of the state-owned commercial banks and the establishment of corporate governance system. Section II introduced the recognization of the meaning of the financial security, and the relations among the financial security,the financial risks and the financial crisis.In the second part, it firstly reviewed the practical process of the joint-stock reform of state-owned banks, and focused on analyzing the case of Construction Bank of China. Finally introduced the impacting factor to the financial security in the joint-stock reform. This part is divided into three sections. Section I introduced the process of the joint-stock reform of state-owned commercial banks, and summed up the reform history of Construction Bank of China which is the representative of the state-owned banks. The introduction of strategic investors has become the key link and effective way of the reform of commercial banks and financial system. Through the introduction of the strategic investors, we can not only get the added capital funds directly and raise the capital adequacy ratio further, but also improve the corporate governance structure of the banking sector of China. Improving the corporate governance mechanism is the fundamental purpose of the introduction of strategic investors. The fundamental crux of all problems in banking sector of China lies in not having a good corporate government structure. In this part, one section is specially set up to introduce the practice and significance of the introduction of strategic investors of the state-owned commercial banks in China., Foreign strategic investors not just give us the benefits, but They are bringing also many risks deserving our vigilance. Firstly, the state's control of the banking sector has been weakened. Secondly, the challenge to financial supervision has existed. The last section specially focused on the impacts of the joint-stock reform of state-owned commercial banks to the financial security in China.The third part summed up the experience of joint-stock reform of foreign banks by introducing the strategic investors. It is divided into four sections. This part mainly regarded the situations of the state-owned banks' property rights reform of the Eastern European countries as a reference. By analyzing the property rights reform of the state-owned banks in Poland, Hungary and the Czech, we can see that the choice of the foreign strategic investors,the arrangements of the ownership structure and the roles of government are very important to the reform. It has great referenced significance to the property rights reform of the state-owned banks in China and the introduction of foreign strategic investors.The fourth part suggested the policy recommendations to the joint-stock reform of the state-owned commercial banks based on the financial security. This part introduced the path chosen of the joint-stock reform of the state-owned commercial banks in China from three angles: the internal corporate governance,the external supervision environment and the improvement of the whole efficiency of the Chinese financial sector.