Research On “Going Out” Strategy Of Agricultural Bank Of China In Post-crisis Era

In post-crisis era, the structure of the world’s economy and finance has changed deeply, the entity economy of China has developed rapidly, the “going out” pace of Chinese enterprises has accelerated, and the progress of RMB’s internationalization has speeded, all these factors has prompted the irreversible trend of the times of Chinese banks’ "going out". To study the “going out” strategy of Agricultural Bank of China(ABC) in the particular background is a vital topic in the process of all-round reform of Chinese state-owned commercial banks. ABC implements its “going out” strategy duly and carefully, which not only can serve Chinese economic internationalization, but also can help ABC to spread its business risks and maintain its operation earnings,more importantly,it is the only choice for ABC to enhance its core competitive advantages. Therefore, to study ABC’s “going out” strategy has important practical significance and application value for its development and reform process.Based on the study of commercial bank’s “going out” theories at home and abroad,the paper pointed out the new changes of domestic and foreign environments in post-crisis era, analyzed the present situation of the implementation of ABC’s “going out” strategy,dissected the issues and reasons which ABC faces in its “going out” development. The paper analyzed the macro environment which ABC confronts in its “going out” process using PEST method, dissected the competitive environment of the banking industry adopting Michael Porter’s Five Forces Model. SWOT model is applied to analyzing comparatively the strengths, weaknesses, opportunities and threats of ABC’s “going out” in post-crisis era. According to these, the paper put forward implementation plans of ABC to accelerate its “going out” strategy in post-crisis era, which including the following aspects:First, to use differentiation strategies in regional distribution, to choose Asia at first, to selectively enter emerging markets such as Africa, Latin America etc., to strategically locate in financial center city of Europe and the United States. Second, to adjust the entry mode according to local conditions, to set up branches in regions with low access threshold, to set up subsidiaries in regions with strict supervision and restrictions, to enter the areas with more acquisition opportunities by means of acquisition,to enter mature markets such as Europe and the United States in the form of participation.Third, to advance business strategies of synergistic interaction with domestic and overseas branches, to promote the products which fit "going out" enterprises, to innovate the mode of credit and credit products, to make full use of the business advantages and interaction of domestic and overseas branches, to develop the cross-border RMB businesses vigorously.Fourth, to establish perfect risk mechanism and comprehensive risk management system,to achieve integrative concentrated risk management of domestic and overseas branches, to foster international talents having both ability and political integrity.Under the special background of adjustment and reform of the structure of the world’s economy and finance in post-crisis era, based on the SWOT model, this paper put forward implementation plans of ABC to accelerate its “going out” strategy in post-crisis era, and its innovations lie in: It thought pattern of ABC’s "going out" should be adjusted according to local conditions, which not only includes building up branches in the scale expansion,but also involves looking for opportunities for overseas acquisitions and participations; It presented domestic and overseas branches should cooperate to develop RMB businesses taking the opportunity of RMB’s internationalization; It proposed the integrative concentrated risk management system of domestic and overseas branches should be established to receive the test of multiple risks of ABC’s internationalization.