Study On The Impact Of Foreign Strategic Investor With Holding And Unloading Chinese Commercial Banks

The introduction of foreign strategic investors is an important part of Chinese banking reform, it aim to improve corporate governance and competitiveness expectations. Due to encourage of policy and need of development strategy, a lot of Chinese Commercial Banks introduced foreign strategic investors after 2002, and stepped into a climax period after 2005. But due to influence of financial crisis, foreign strategic investments continuously reduced Chinese Commercial Bank’s equity, and still continue to the present day.This paper will study the typical cases that the Bank of America invest and unload China Construction Bank, so that it can help to analyze the effect that foreign strategic investors invest and unload Chinese Commercial Bank, both on corporate governance and operating performance. Firstly, this paper briefly introduces why introduce foreign strategic investors, and the status of foreign strategic investors shareholding and unloading. Secondly, this paper analysis of the cooperation background, and then summarized the content and results between the two sides. On this basis, this paper emphatically analyzes the effect on corporate governance and operating performance of Bank of America, and impact of unloading.Through analysis, this paper found that Banks of American’s shareholding can improve corporate governance and performance of Chinese Commercial Bank, while unloading has adverse effect on China Construction Bank’s corporate governance, but less effect on the operating performance. Finally, based on the analysis, this paper suggest that Chinese commercial bank shall actively introduce foreign strategic investors, but should take corresponding measures to improve the foreign strategic investors’ exit mechanism, to cope with the adverse effects of quitting.