Research On The Performance And Strategy Of Chinese Banks’ Overseas M&A

In recent years,Chinese banks have achieved steady and orderly development in the layout of overseas business.With the progress of financial globalization,reviewing the development history of outstanding multinational banks such as HSBC and Citigroup,these hanks have achieved global business expansion and international development through continuous overseas mergers and acquisitions.At the same time,with the continuous improvement of China’s interest rate marketization reform,the traditional profitable projects of domestic banks--deposit and loan spreads is also decreasing.Under Chinese developing strategy called “going out” and get in line with the trend of international economic development,China’s commercial banks are increasingly participating in overseas mergers and acquisitions,expanding their business scope and enhancing their international competitiveness,in this way they can act better in market competition which is get increasingly fierce.During the research’s process,the short-term performance study of the M&A case uses the event research method,mainly for the M&A party – Construction Bank;in the research of medium-term and long-term M&A’s performance,the factor analysis method and the financial indicator analysis method are applied to the acquired party--Indonesia Windu Bank.And the research on the merger and acquisition party is carried out from two aspects: financial indicators(selecting overseas department of CCB)and non-financial indicators.The results of the case study show that not only the release of the M&A announcement had brought positive financial performance impact to CCB(for short-term),but also the M&A activity and subsequent integration work,which has effectively improved the comprehensive financial performance of the M&A parties.However,M&A integration activities have also greatly increased operating costs.For the business situation of the acquired parties,there is still room for the improvement in economic benefits and asset management benefits.The integrated management of M&A activities still needs to be deepened to make Synergies and scale effects are fully realized.Therefore,this thesis not only compares the case--the performance of CCB Asia and the analysis of its integration experience,but also draws the effective business enlightenment of the studied case.Also,according to the results of the M&A performance of the studied case,the thesis proposes 4 aspect’s suggestion –business development,capital operation,manpower management,and technology to promote its development.Finally,combined with the development status of overseas M&A of Chinese banks,the thesis puts forward the strategies and suggestions for the feasibility of Chinese banks in overseas mergers and acquisitions.