Strategy Research Of Oversea Development Of State-own Commercial Bank Of China

With the accelerating economic globalization and improving influence of the Chinese economy, and more importantly, in order to follow the growing trend of the international banking industry, Chinese banking industry has to expedite its development overseas, whether from the perspective of external environment or internal requirements. During this process, the overseas expansion and internationalization transition of the top five state-owned commercial banks have become the key to the development of Chinese financial industry. The current imperative problems faced by Chinese banks are which route to choose to grow overseas, how to implement, and in which direction. Consequently, this project attempts to examine the feasible approaches and strategic models for the overseas development of Chinese state-owned commercial banks, through the probe into the experience and lessons of large international banks as well as the current development status of Chinese state-owned commercial banks. This project also endeavors to provide reference on strategic development to the management of Chinese state-owned commercial banks.This project leverages on the strategic management theories to analyze and summarize the overseas expansion models of Citigroup and HSBC, and categorizes their international evolution strategies into global strategic model and multi-nation strategic model, respectively. The author believes that the two models have distinct fundamentals and prerequisites in the application in the development of large international banks. Chinese state-owned commercial banks can gain tactical insights from the evolution of Citigroup and HSBC, but could not mimic either of their models.In addition, the author conducts detailed literature review and analysis on the rise and fall of the overseas expansion of Japanese banks. Through the investigation on the internationalization background and ties among banks, the government and corporations similar to China, the author also raises noteworthy mistakes and dangers during the overseas growth of Chinese state-owned commercial banks.Through the investigation on the overseas expansion models of large international banks, the current development status of the Chinese economy, and the development status and patterns of Chinese state-owned commercial banks, this project elaborates on the following perspectives of the overseas growth of Chinese state-owned commercial banks: the fundamental principle, implementation approaches, implementation procedures, target screening, and control and assurance of the strategies. The author believes that 1) Chinese state-owned commercial banks should expedite the development overseas; 2) Chinese state-owned commercial banks should follow the fundamental principle of"fast, steady, inconspicuous (low-profile), and pragmatic"; 3) during the implementation of the overseas expansion strategies, the banks should explore their merits while bypass the weaknesses, and fully utilize their comparative competitive advantages; 4) at the current stage, the implementation approach of the strategies should focus on Mergers & Acquisitions, supplemented by self-constructions; 5) the implementation of overseas expansion strategies requires the screening of the target market, step by step; and 6) the implementation of overseas expansion strategies demands the strengthening of risk control. Chinese state-owned commercial banks can grasp the historic opportunities in the overseas development, and achieve four-level positioning: the diversification and specialization in the industry and business, the exploration of status and scope, the cultivation and creation of competence and superiority, and the innovation in management control and profit model, so that they can follow the route with Chinese characteristics to"develop peacefully", and achieve the final destination of"rooted natively, and serving globally".