China Minsheng Banking Development Strategy

China banking corporations has been facing unheard-of opportunities and challenges since china finance market was open to foreign capital in 2006. One side, China expedites its process to industrialization, market-orientation, and globalization. Demand for finance is rose while economic structure is changing and the society is developing. On the other hand, finance globalization keeps stepping up. Finance markets in different countries have more and more interaction and competition. Capital flow among countries increases. As a result, there is more uncertainty. China Minsheng Banking Corporation (CMBC), as an enterprising young banking corporation, how should it set up its own strategy, and win the competition with foreign banks is a serious question.There are opportunities and challenges in banking market. Fundamental factors are favorable for economy placid and fast development. Citizen governable earning rises continually. Finance integrated operation pilot test is rolled out stably. However, the policies ,such as the market-oriented interest rate and direct financing, lead to challenges to conservative banking operation module. CMBC, which has operated for 10 years, has its own advantage and shortage. One side, CMBC keeps ahead as of wholesale business (corporate banking market share 10.6%, the third marketer) and risk control (risky loan rate 1.2%, the best asset quality).One the other hand, CMBC is weak as of business structure (retail business as low as 15%) and earning structure (fee business as low as 4.87%), which affects CMBC profitability.In order to carry forward CMBC advantage, make use of outside opportunities, and slide over its shortage and outside threat, the text brings forward CMBC strategetic position based on SWOT method as FINANCE HOLDING COMPANY. According to asset capital on business allocated to the highest return on risk capital (RORC) principle, CMBC should use the following strategies.1. Centralize corporate banking business, improve its structure. Develop middle or small enterprise banking business and investment banking.2. Promote retail business, and reform business structure.3. Increase fee business earning share, and improve income structure.4. Carry out division reformation, and set up procedure banking.5. Proceed multi-business and globalization, and build up finance holding company.6. Come to the oversee stock market and improve corporate management. With reference to domestic and foreign banks experience, the text frames proposals for the above strategies, which outline CMBC future development road map and take the future challenges.The text tells that CMBC return on investment capital (ROIC) is to be improved stably if the development strategies are brought into effect. Fortune's statistic data on Standard Poor's 500 listed companies disclosed that higher ROIC leads to higher enterprise created value and better competition capability. Thus, CMBC development strategies are going to help CMBC vision to come true consequentially.