Study On The Internationalization Of Bank Of China

With the gradually deepening of China’s reform and opening up, the domesticenterprises deeply join to overseas markets.As of the end of the first quarter of2012,foreign investments from the Mainland of China cover18,000foreignenterprises in178countries and regions around the world. The cumulative amount offoreign direct investment amounted to$393.83billion. In addition, Chinese bankingindustry is facing another major opportunity for the internationalization of the RMB.The pace of internationalization of the RMB is accelerating.The RMB clearingvarieties cover all current account and the direct investment business of the capitalaccount. The Hong Kong market has become the largest offshore RMB center.Offshore RMB center is also being built in London and Singapore. With theacceleration of internationalization of the RMB and the increasing number ofcross-border transactions, the mutual influence between the RMB onshore andoffshore markets is deepening. With the acceleration of domestic enterprisesglobalization and the internationalization of RMB, the offshore financial business isvery promising. The main purpose of this paper is to make a comprehensive analysisof Bank of China, which has the highest degree of internationalization, then we getthe law of international development experience.In this paper, it makes a comparative analysis between Bank of China and thelarge multinational banks. First, we made a brief introduction of HSBC, Citibank andABN AMRO. In the forth chapter, we made a systematic analysis of the internationalroad of Bank of China from five aspects. The five aspects are internationalization ofinstitutions, internationalization of business, internationalization of talent,internationalization of management, and internationalization of shareholders. By thecomparative analysis of three large multinational banks,which HSBC is the maincomparative objects, we draw the conclusions: Although there are some deficienciesin the propulsion of the institutional internationalization, Bank of China has basicallyrealized the internationalization of institutions, and has achieved a global layoutnetwork construction; But in the other four areas, the international level of Bank of China is relatively low, and there is a big gap between Bank of China and the world’slarge multinational banks. Secondly, we analyzed the main factors, and these factorsinclude: home country factors, host factors and the bank’s own factors. Through theanalysis of influencing factors and the analysis of macroeconomic environment,industry environment, the internal environment, we can draw that the current situationis very favorable for multinational development. Finally, this paper proposed a fewshallow recommendations: develop a clear strategy of internationalization; increase incross-border mergers and acquisitions and rationalize global distribution, then realizeinternationalization of institutions; restructure businesses and strengthen independentinnovation, then realize internationalization of business; pay attention to attract andnurture talent,then realize internationalization of talent; improve the corporategovernance structure, then realize the internationalization of the shareholders; setrational internationally internal organization system, then realize theinternationalization of management. During the few comments, we particularlyemphasis on the role of overseas mergers and acquisitions to solve the problems.