The Study Of Overseas M&A Of Bank In China

In 2006, with the end of the WTO transition period, China announced to grant national treatment to foreign banks. Foreign banks could compete full equally with domestic commercial banks by establishing subsidiary banks in China. This means that the foreign banks, especially multinational banks like Citibank, Standard Chartered have become strong competitors of Chinese commercial banks. At the same time, the high-quality customers of Chinese commercial banks——large and medium-sized enterprises are or have been "going out" to open up overseas markets, and explore the road of international operations. In the face of competition from foreign banks and customers’demand for overseas service, international business strategy has become the inevitable choice of Chinese commercial banks. How to improve the operational efficiency of the target banks in overseas M&A is the primary problem that commercial banks in China exploring the international development road faced. Measuring M&A efficiency could serve Chinese banks better in the way of the cross-border M&A entering the international banking industry; enhance the comprehensive competitiveness of Chinese banks in international banking.The main line of argument in this article is:Whether the Chinese commercial banks could improve the efficiency of the target bank by overseas M&A, and how the overseas M&A could improve the efficiency of the target bank. First of all, before the study of M&A efficiency, this article define the basic concept clearly, and analyze motivation of overseas M&A as well as the efficiency theory of bank M&A on the basis of which evaluation system of the target bank is constructed, and evaluation method used in this paper is proposed. Then, five overseas M&A bank as examples are used in the evaluation model to analyze the case and conclude overall efficient in overseas M&A of commercial banks in China, but the prevalence imperfectness in late integration. Finally, the targeted policy recommendations about overseas M&A are suggested for Chinese commercial banks.