China's Banking Industry Risk Of Cross-border Mergers And Acquisitions Research

With the end of 2006, China's finance industry fully opened, as well as the promoting and deepening of Chinese enterprises "going out" strategy, China's banking industry has also accelerated the international operation. The four major state-owned commercial banks as pioneers in the practice of cross-border M & A, has made certain achievements. Other domestic joint-stock commercial banks are catching up in recent years, their M & A movement is growing fast. Such as China Minsheng Bank staked in United Commercial Bank in March 2008, a wholly owned acquisition of Hong Kong Wing Lung Bank by China Merchants Bank in November 2008.Practice has proved that mergers and acquisitions can achieve economies of scale, and improve economic efficiency of enterprises, while the level of its inherent risks is considerable. There are indications that the international economic and financial sector is becoming even more unstable, the risk may be imminent.It can be predicted, as China's banking sector to increase the movement of cross-border merger, cross-border M & A risk issues will be gradually brought into light. In this context, it's major problems that actively and steadily making cross-border M & A strategy and scientific and rational prevention and control the risk of cross-border M & A.At present, from the banking point of view, there is little research that systematic study how to identify and evaluate the risk in the process of cross-border M & A, and guide the banks to prevent the risk of cross-border M & A. Therefore, the research project has strong practical and theoretical value. This paper has discussed the following five parts:The first chapter describes background and significance of this study, and detailed discuss the study status of the risk of cross-border M & A about domestic and international, summarizes the content and research methods.ChapterⅡdefines some basic concept about cross-border M & A and risk, summed up the characteristics and motivation of China's banking cross-border mergers and acquisitions on the basis of cross-border M & A practice over the years.ChapterⅢidentifies the risk of cross-border M & A in terms of systemic and non-systematic aspects. Country risks include political risk, economic risk and legal risk. From the acquisition of the preparatory phase, implementation phase and integration phase discuss the operational risks. Then introduced the common M & A risk assessment methods and models. ChapterⅣconducts an empirical study of two cases in terms of M & A background, M & A motives and M & A risks.The last chapter integrate various risks and problems that may arise during the cross-border banking M & A, recommend some risk prevention measures and suggestions, such as the emphasis on prevention and control of country risk, emphasizing the cultural integration.