| Japan Import and Export Bank opened its first representative office in Beijing in 1979, which marks the beginning of opening up of Chinese banking industry. After China accessed to the WTO, foreign invested banks accelerated their entry speed. Their statuses in Chinese banking industry have gradually moved closer to the center. The entry of foreign invested banks has a great influence on the Chinese financial industry, and even national economy as a whole, and different entry modes result different effects. So the study on the entries of foreign invested banks and their entry modes is very urgent and important.To order to explore the outline and characters of foreign invested banks' entries to China, this paper first analyses the two climax of foreign invested banks' entries to China comparatively, using economic and historical methods. Then the market structure and legal environment of Chinese banking industry, and foreign banks' competitive strategies are analyzed, so background information about foreign banks' entries to China are shown. Through empirical study, we find that factors such as, economic and trade exchange influence foreign invested banks' entry decisions. By comparing foreign invested banks' different entry modes and the case study of Citibank, general lesson of the choice of entry mode is revealed.Using data base such as Bankscope, we analysis the two entry modes e.g. establishing Chinese subsidiaries and investing Chinese banks thought equities ,in detail and find that the two climaxes share similar motivation such as follower relationship. This paper regards investing Chinese banks through equities as an entry mode paralleling to establishing subsidiaries, and finds that the practice that setting up own subsidiaries and investing Chinese banks thought equities at the same time, is rather than a countermeasure to Chinese banking regulation, but a part of foreign invested banks' hierarchical strategies. |
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