A Study Of Chinese Banks’ Overseas M&A——Based On The Analysis Of The Practice Of China Merchants Bank Mergering Wing Lung Bank Limited

Since the1860s, there have been three banking M&A waves, each having brought important effects on the world economy. Affected by the international banking M&A waves, large state-owned commercial banks and strong joint-equity commercial banks in our country tried to enter the international financial market through the overseas M&A. In the early, the number of Chinese banks’overseas M&A was little, and the scale was small. In recent years, with the rapid growth of Chinese economy and the high boosting of Chinese banks’competitiveness, the number has increased, and the scale has expanded. At the same time,theoretical studies about banks’overseas M&A increased gradually and had little success. There are still many aspects worth studying. So I chose to study this topic.The subject of this paper is Chinese commercial Banks overseas mergers and acquisitions, and discusses around the case of China Merchants Bank Mergering Wing Lung Bank. Firstly, I review the existing literatures at home and abroad, summarize research achievements and shortcomings, and determine the research priorities for case analysis in this paper. Then, I review the whole process of this M&A case, and have empirical research on M&A performance. Finally, I summarize a few beneficial enlightenments for overseas mergers and acquisitions of Chinese banks. Based on this research ideas, there are five parts of contents in my paper.Chapterl is preface. This section talks about the background, research significance, purposes, research methods, innovations and deficiencies of the paper.Chapter2is a review of commercial Banks overseas mergers and acquisitions. This part first explains some important concepts, reviews the existing literatures, gives my comments, and then briefly introduces the history and current situation of Chinese commercial banks’overseas mergers and acquisitions.Chapter3is an overview of the case. This part first introduces the both sides of M&A, analyzes mergers and acquisitions causes, reviews the whole process, and researches the M&A performance on China Merchants Bank.Chapter4is empirical research. This part studies China Merchants Bank’s short-term and long-term performance, with event study method and accounting index method.Chapter5is summary. According to the above analyses and the empirical results, this part gives some beneficial advice for Chinese commercial banks’ overseas M&A.The conclusion of this paper is that overseas M&A will make for synergistic effects and improve short-term and long-term performance of China Merchants Bank. When Chinese commercial banks do overseas mergers and acquisitions, they should pay attention to choose acquisition targets, seize proper timing,and complete the merger integration.