A Study Of The Status And Development Strategy Of China’s Commercial Banks’ Asset Custody Business

As the international cross-border capital flows frequently increases, global securities investment activities grow actively and the development of the international financial market bloom, commercial banks asset custody business becomes more and more independent from the specialization of social division of labor. It matures gradually and then turns into a special professional service of commercial bank. Since 1990s, commercial bank asset custody business gradually developed in China. Although later than foreign countries, it has made a big breakthrough in the past 20 years. In recent years, domestic economy develops fast and financial market system reforms deeply. As a result, both domestic capital and money markets present a rapid development momentum. Under this circumstance, bank financial product market grows faster and bigger. Meanwhile, good economic development environment brings fast-development opportunities for domestic commercial bank asset custody business.With this background, this paper means to make a comparative analysis of the development and current situation of the assets custody business of domestic and foreign commercial banks in order to find out the weak link of the domestic asset management business development and to put forward constructive suggestions to promote the sustainable development of the business in China.Firstly, this paper expounds the main theories of asset custody business and then analyzes its development course and current situation both at home and abroad. Accordingly, this paper uses the SWOT model to systematically analyze strengths, weaknesses, opportunities and challenges of the asset custody business in China. Also, this paper uses examples of Industrial and Commercial Bank of China, China Everbright Bank, Internet financial as well as the construction of free trade zone in Shanghai for further details. Finally, this paper concludes that asset custody business in China should first understand the situation clearly, choose suitable strategic goals, provide differentiated services by expanding the area of services and cultivate talented employees thus to make progess and to narrow the gap with international asset custody business.The study of this article means to boost the development of asset custody business in China and to provide a certain amount of research data for custody business research for the purpose of making contribution to the development of asset custody business in China.