The Research On The Performance Of China’s Commercial Banks’ Overseas M&A

In this thesis, we study the case that China Merchant Bank acquired Wing Lung Bank in 2008 in order to find out the performances of China’s commercial banks in overseas mergers and acquisition. In this case study, firstly we introduce the background of China’s commercial banks in overseas M&A and conclude its characteristics. Thus, we replayed the whole process about how CMB acquired WLB and how CMB integrated WLB. Event study and financial analysis were implemented when studying the performance of this acquisition and we found out that in the beginning the market was upset about this deal and the financial performance of CMB within two years proved the view of market. However, CMB’s financial performance was becoming better two years later. On the other side, WLB, as the acquired bank,turned to be profitable in the first year along with its management. In the end, this thesis concludes the valuable experience of CMB acquired WLB and makes several practical suggestions to the overseas M&A for China’s commercial banks,including emphasize mi-term and long-term benefits, begin with Hong Kong, pay attention to synergy grasp the opportunity in time.