The Research On Strategic Transition Of Hua Xia Bank Under The New Financial Normal

The object of the thesis is a national joint-stock commercial bank—Hua Xia Bank.In recent years,China has been undergoing complicated economic and financial situations,and banking industry’s business environment has undertaken dramatic changes under the new financial normal.As banking industry is highly pro-cyclical,the old developing pattern has been affected a lot.The joint-stock banks belong to a dynamic group of Chinese banking industry,which is more marketized and more stressful under the new situations to undertake transitions.The most realistic and urgent challenge of joint-stock banks,especially Hua Xia bank is solving the puzzle of strategic transitions,on how to conform to new situations,and to implement transitions which are in line with bank’s own resources endowment.This is the background of the thesis on which the research and discussions have been done.The first part of the thesis is a brief introduction to Hua Xia Bank’s development history and current situations,in which the current situations were analyzed from two angles of achievements and problems using recent years’ data.The second part is the external environment analysis,including macro-environment(using PEST approach)and competition environment(using Michael Porter’s Five Forces Model).PEST approach covers Political、Regulatory、Economic、Social and Technological,while Five Forces Model covers Rivalry、Threat of New Entrants、Bargaining Power of Suppliers and Buyers and Substitutes.The third part is the internal resources analysis,using data comparisons of peer banks,covering capital and the major stock-holder strength,business diversification implementation,customer resources,production resources,branches layout,management mechanism construction,and human resources.The fourth part is to summarize Hua Xia Bank’s external and internal motives to strategic transitions using SWOT approach,clarifying Strength,Weakness,Opportunity,Threat of Hua Xia Bank.The last part is to draw a conclusion to Hua Xia Bank’s strategic transitions of “Two Big Features and Four points of strength” based on previous analysis and enlightenments from peer banks’ transition practice.