China Merchants Bank's Strategic Transformation Motivation And Performance Research

The "Golden Decade" for the development of China's banking industry continued from 2003 to 2013,with the acceleration of economic structure adjustment and financial marketization reform,facing the slowdown of domestic economic growth,marketization of interest rates,rapid development of financial technology and increasingly strict regulatory orientation.The narrowing of the net interest spread of commercial banks and the slowdown in earnings growth indicate that China's commercial banks are now facing urgent pressure to transform.As the representative and pioneer of retail banking,China Merchants Bank has always been at the forefront of transformation and has become the sixth largest commercial bank in China through the successful implementation of strategic transformation.Every strategic transformation is a dynamic adjustment process for China Merchants Bank to adapt to changes in internal and external environments to make development decisions more conducive to development.This paper firstly systematically expounds and analyzes the three important strategic transformations of China Merchants Bank,and combines the changes of the macro and micro business environment to profoundly reveal the logic of the strategic transformation track of China Merchants Bank and the motivation behind it.Then analyze the strategic transformation from the perspective of enterprise value.Finally,it summarizes the successful experience of China Merchants Bank's strategic transformation and provides reasonable suggestions for the strategic transformation of small and medium-sized jointstock commercial banks.The study find that China Merchants Bank has formed a threestrategy transformation of “big retail” strategy,“lightweight” strategy and “financial technology” strategy to form a retail-based asset-liability structure,from a single extensive profit model led by interest rate differential to a diversified intensive profit model with balanced development of intermediary business income and interest income,become a joint-stock commercial bank with the strongest profitability,superior asset quality,strongest development and innovation capability,and complete endogenous capital supplement in China.The research of the thesis aims to provide the experience of joint-stock bank transformation in new era,and at the same time,it can be used as a reference for the strategic management of commercial banks and the construction of banking performance evaluation system.