Research On The Development Of China Construction Bank's Institutional Internationalization

With the deepening of the world economic integration and financial liberalization,the global linkage of the international financial market has also been enhanced.The commercial banking industry in various countries has cancelled the legal restrictions and advocated the liberalized development among the commercial Banks in various countries,resulting in changes in the global banking pattern.China continues to deepen reform and opening up,and encourages and supports enterprises to go out and participate in international competition.China Construction Bank should not rest on their laurels,but also go to the international market.They should cooperate with enterprises going out to conduct transnational operations,occupy the international financial market,and enhance their visibility and influence in the international financial market.At the same time,through the way of internationalization of commercial Banks not only can reduce the economic cycle risk,purchasing power risk,exchange rate risk,such as systemic risk,and may be achieved under the background of economic growth more generous returns,expanding international business income in the bank's share of revenues,on the basis of more to improve the diversity and stability of bank's income.This paper studies the international development of China Construction Bank 's overseas branches from four aspects: the development status,influencing factors,problems in the establishment and development,and countermeasures and Suggestions.The internationalization of China Construction Bank institutions is the result of the continuous close global economic linkage,the enhancement of the interaction between the banking sectors of various countries,the rapid momentum of RMB internationalization,the precious opportunities brought by the "the Belt and Road" strategy and the drive of its own development.The second chapter of this paper analyzes the status quo of China Construction Bank's internationalization,mainly from the perspective of quantity,layout and setting mode.The internationalization of China Construction Bank started late and developed rapidly after the shareholding reform.The overseas branches of China Construction Bank are mainly distributed in Asia and Europe,and relatively few in the America,Africa and Oceania.In addition,most of the overseas branches of China Construction Bank are set up in a new investment way and have little experience in overseas mergers and acquisitions.The third chapter analyzes the influencing factors of the overseas branch layout of China Construction Bank,and studies the political factors,economic factors,geographical and cultural factors and the situation of China Construction Bank itself.Firstly,political factors need to consider China and the host country,mainly the policy orientation of China and the institutional environment of the host country.Secondly,the economic factors include the financial openness of the host country,the size of the market,the market potential,the degree of financial aggregation and the economic exchanges between China and the host country,which include the trade and investment exchanges between the two countries.Again,geographical and cultural factors including the geographical distance between China and the host country and cultural differences,in general the resources of the host country,and the closer the distance of the China Construction Bank of China will be more willing to multinational management into the local market,but the distance between the two countries at the beginning of the China Construction Bank institutions internationalized effect is more apparent,along with the science and technology the rapid development of network,communication equipment,vehicles,the disadvantages of geographic distance to offset to some extent;In addition,the smaller the cultural difference and the higher the homogeneity between China and the host country,the more willing China Construction Bank is to set up local branches.Finally,the factors of China Construction Bank itself include the international development strategy and comprehensive strength of China Construction Bank.Specifically,China Construction Bank adheres to the development strategy of "expanding Asia,consolidating Europe,breaking through the United States and Australia,and attaching importance to emerging markets",which determines the layout of its overseas institutions.In addition,China Construction Bank is the second largest state-owned commercial bank in China,with a large asset size and an emphasis on fintech innovation,which provides strong support for China Construction Bank to set up branches in emerging markets and other less developed countries and markets.However,compared with large multinational Banks,the ownership advantages of China Construction Bank in technology,management and operation are weakened,so China Construction Bank can mainly enter the local market through overseas mergers and acquisitions to learn its advanced management experience,technical knowledge and development model.The fourth chapter studies the problems existing in the internationalization of China Construction Bank from the establishment of overseas institutions and the development of existing overseas institutions.There are two problems in the establishment of overseas branches of China Construction Bank,including new investment and overseas mergers and acquisitions.In its new investment,China Construction Bank is faced with the problems of diversified risks in the host country,lack of experience in overseas mergers and acquisitions,and weak ability to integrate resources after mergers and acquisitions.Existing overseas institutions have problems of single international business,unscientific management mechanism,unsound risk system and unreasonable personnel allocation.In the last chapter,some Suggestions are put forward for the internationalization of China Construction Bank.First of all,China Construction Bank should choose the appropriate market entry method according to the market situation of the host country.If the new investment approach needs to strengthen the overall control;If we enter the market through overseas merger and acquisition,we need to improve the ability of resource integration after merger and acquisition.Improve the financial innovation ability,create characteristic products,improve the diversification of financial agricultural products;Continuously improve the internal control mechanism and governance model;Establish scientific incentive system and train professional talents.To sum up,the internationalization of China Construction Bank 's institutions is an inevitable trend and an inevitable choice in today's open economy.China Construction Bank needs to take targeted measures on the existing problems of institutional internationalization to better promote the development of institutional internationalization of China Construction Bank.