Overseas Mergers And Acquisitions Of Chinese Banks In The Post-Crisis Context

This paper analyzes the overseas M&A activity of Chinese banks in the specialcontext of the financial crisis. It is discussed from three aspects:Firstly, this article analyses the reasons, development process and the impact onthe world banking of the financial crisis. The financial crisis is mainly due to theexcessive expansion of subprime lending, the excessive development of financialinnovation and improper Fed monetary policy. The subprime mortgage crisis hasevolved into a financial crisis. Although the financial crisis has caused a seriousimpact on the world’s banking industry, but this favorable opportunity to the financialcrisis has given to Chinese banks overseas mergers and acquisitions, reducing the costof Chinese banks overseas acquisitions and barriers limit access to overseas markets,and helping Chinese banks to attract high-end financial professionals, and lay a talentbase for the future development of the bank.Secondly, this article focuses on the necessity and feasibility of the Chinesebanks overseas M&A activity. The good momentum of development in recent yearsof stable economic development momentum of China and Chinese bank, hasprovided the economic base for banking overseas M&A activity, which hascontributed to the launching of it. Overseas M&A activity of Chinese banks canbreak through the limitations of separate operation of the domestic banking sector,and provide convenient financial services for Chinese-funded enterprises "going out",and improve the strength of the bank’s own response to fierce internationalcompetition, and reduce the losses brought about due to the appreciation of the RMBto the bank’s assets, and dispersed bank investment risk, and improve theirprofitability. Finally, this article sums up the problems in Chinese banks overseas M&Aactivity. Chinese banks in the previous overseas mergers and acquisitions practicehave had considerable problems. These problems are profound restricting overseas M&A activity conducted in Chinese banks. To solve these problems, this paper ismainly about the choice of acquisition targets, M&A capital raise, as well aspost-merger integration. The main innovations of this paper are to elaborate overseasM&A activity of Chinese banks in the special context of the financial crisis, hopingto play a guiding role in policy making.