China’s Commercial Banks Overseas M&A Comparative Case Study

Since the joint-stock commercial bank reform in2004so far, China ’s size and strengthof the banking industry has experienced explosive growth in the world’s financial stageoccupying a place. With the improvement of their own strength and Chinese enterprises "Going out" to accelerate the pace, banks are also aware of the need to enhance the globallayout. Whether it is a large state-owned commercial banks, joint-stock commercial bankor policy banks are actively promoting the globalization strategy, in improving the globalnetwork, based on the participation of more cross-border mergers and acquisitions. Bankof China, the rapid expansion of the need to expand overseas business, and the bank infavor of overseas mergers and acquisitions of Chinese banks to go out. China’s bankingsector to more foreign dabbled commercial banking, insurance, funds, trusts and otherfinancial IAS, raising funds through international settlement, trade finance, foreign bonds,syndicated loans, to seize the overseas markets in order to achieve real banks "going out."This is the case of the two selected case studies of small and medium banks docomparison, namely Hong Kong, CMB merger acquisition of Wing Lung Bank andCMBC merge rthe United Holding Company. Applied to modern economics managementapproach, careful analysis of the causes of success and failure cases, the acquisition ofWing Lung Bank and China Merchants Bank, CMBC from the bank holding company toacquire United merger motives, M&A process, and analyze the efficiency of the merger,the merger while understanding dangers arising from mergers and acquisitions, these fouraspects. This paper analyzes the use of a combination of theoretical and case. In fact, thetheory of China ’s overseas bank mergers and acquisitions of Chinese theorists, and many,but rely only on cross-border M&A theoretical study of a comprehensive theoreticalgroundwork for cases involving cross-border bank mergers and acquisitions, it is not toomuch use of the theory of China base case analysis done in conjunction with the role ofgood practice, we can get the process of cross-border banking problems arise from a casestudy, this paper is to analyze the combination approach to cross-border bank mergers andacquisitions overseas based on theoretical analysis and case examples, by carefullyselected examples of domestic banks in the case of overseas mergers and acquisitionswhich compare representatives of small and medium banks, further analysis of theunderlying causes of success or failure of the case and draw macro and micro aspects ofthe two strategies.