The Strategic Choice Of Overseas Mergers Of China’s Commercial Bank Based On The SWOT Analysis

With the third merger waves hit, overseas M&A has become the main ways and means for the major international financial institutions to expand the scale, to fight for resources, to seize the market, to improve their core competitiveness and to realize comprehensive, international development strategy. For China’s commercial banks, in order to survive and develop, overseas M&A is an inevitable strategic choice. After three decades of overseas M&A practice, China’s commercial banks have made a lot of substantive progress, but still at the starting stage, lacking of clear strategic positioning and effective strategic guidance, and the success rate of M&A has yet to be improved. In the new historical juncture, how to make the best use of its comparative advantages, and make correct respond to threats and opportunities given by the domestic and foreign environment, so as to develop the most suitable overseas M&A strategy for China’s commercial banks fitting for their own actual situation, which is of great significance for the practice of overseas M&A of China’s bank.Firstly, this paper is begun with the background and significance of research, laying a theoretical foundation. Then it combs the development process of overseas M&A of China’s commercial banks, summing up the characteristics we have and explaining the motivation why China’s commercial banks choose to carry out overseas merger and acquisition in the new time. Furthermore, it mainly uses the strategy analysis tools of SWOT and data analysis method to analyze systematically the internal advantages, the internal weaknesses, the external opportunities and the external threats that China’s commercial banks face in overseas mergers and acquisitions. On the basis of the SWOT analysis, the strategic matrix of overseas mergers and acquisitions of China’s commercial banks is constructed, and it makes the various factors and the variety of possible paths of China’s commercial banks participating in overseas acquisitions matched, then we put forward respectively the best matching strategy according to the four different path choices, Which are SO: Strength&Opportunities, WO:Weakness&Opportunities, ST:Strength&Threats and WT:Weakness&Threats. At the same time, it uses the method of combining theory and practice to analyze the four typical cases in the process of mergers and acquisitions of China’s commercial banks from the four different kind of paths into the overseas. Finally, it mainly puts forward some feasible suggestions to optimize China’s commercial bank strategic choices of overseas M&A activities, for the purpose to provide certain reference and guidance of how to scientifically formulate overseas M&A strategy for China’s banking industry.