Innovation Strategy Of Shanghai Pudong Development Bank

This article is an analytical study on the innovation strategy of Shanghai Pudong Development Bank after its IPO in 1999.From 1960s, the western financial industry had been hugely influenced by a storm of financial innovation revolution, which was pushed by increasing risk exposure, globalization of economy, fast-developing computer-based technology and development of financial regulation. Now, western financial industry is heading for more advanced stage—intelligent and virtual finance. As for China, reformation of the banking system began at 1978. After over 20 years'development, more and more Chinese banks have developed into modern commercial banks. Still, they have a lot to learn from the western commercial banks.Share holding banks in China have relatively high competitiveness, although most of them have less than 20 years'history. Commercial banks, including share holding banks, are facing fierce competition after China joined the WTO in 2001. Besides that, the marketability transformation of interest rates and exchange rates is on the way; development of computer-based high-tech is forcing the financial industry into change; regulation of banking industry is changing very quickly. All of these factors are pushing the innovation in financial industry, including banking industry.This article uncovers different aspects of the innovation that happened in Pudong Development Bank through analyzing the factors which can affect its innovation policies and strategies. In the end, some innovational suggestions are given.