Research On Synergistic Effects Of Chinese Banks' Overseas M&A

The degree of China opening-up to the outside world,the internationalization of the RMB,the market-oriented reform of the banking industry and the “One Belt,One Road” strategy have provided strong policy conditions for the overseas expansion of Chinese banks.At the same time,"financial disintermediation",the long-term low-end of the real economy,profound changes in the financial ecological environment and the development of Internet finance have had a profound impact on the operation of Chinese banks.The major international banks are developing towards internationalization,e-commerce and mixed-use.With the opening up of Chinese financial sector,foreign banks can open up RMB business in China,which has brought business impact to Chinese banks.How do Chinese banks work? In response to the challenges,the implementation of transformation and upgrading has become the focus of attention.At present,Chinese capital market is becoming more mature,and relevant legal systems are constantly improving.Overseas mergers and acquisitions have become an important means for Chinese banks to solve the problem of intensified competition in the same industry,compression of profit margins,excessive proportion of non-performing assets,and leapfrog development.The merger and acquisition of Chinese banking industry is in the ascendant.Whether the achievement of the established synergy goal after the merger is both a touchstone of theory and an important guiding significance for the overseas M&A activities of Chinese banks.This thesis uses a combination of case studies and empirical research to contact the new situation of overseas mergers and acquisitions in Chinese banking industry,and to study the theme of the synergy effect of Chinese banks' overseas mergers and acquisitions.Firstly,it sorts out the literatures and theories related to overseas mergers and acquisitions,and analyzes the theoretical mechanism of mergers and acquisitions,the synergistic effect generation and the evaluation method of merger synergy from the theoretical level.Secondly,it analyzes the development history and current situation of Chinese banks' overseas mergers and acquisitions,and summarizes the characteristics of Chinese banks' overseas mergers and acquisitions from the perspectives of M&A main body,layout,mode and scale.Through the analysis of the case of China Merchants Bank's acquisition of Yonglong,the analysis of mergers and acquisitions The basic situation of both parties,the motivation of mergers and acquisitions,the preparation process of mergers and acquisitions,and the in-depth study of the integration after mergers and acquisitions.Then,using the event research method to calculate the cumulative excess return rate of M&A during the event period to judge the short-term performance of M&A,so as to evaluate the short-term synergy effect of M&A;18 financials were selected from the three dimensions of operation,finance and management.The index constructs the long-term synergy evaluation index system of China Merchants Bank.Through the longitudinal analysis of the financial indicators data of 14 years before and after the merger and acquisition of China Merchants Bank,the long-term synergistic effect of mergers and acquisitions is evaluated by sub-item,and the comprehensive analysis of the synergistic effect before and after the merger and acquisition of China Merchants Bank is calculated by using the analytic hierarchy process.In order to comprehensively evaluate the longterm synergies brought about by mergers and acquisitions.The research results show that: China Merchants Bank M&A has not produced synergy in the short term;it has produced management synergy effect in the long run and obtained financial synergy effect.However,compared with management synergy effect,long-term financial synergy effect is not significant,and no business synergy occurs after 2 years of merger and acquisition.The effect,the synergy effect after 3-5 years of mergers and acquisitions is highlighted,and the synergistic effect is gradually lost after 6-10 years of merger and acquisition.Overall,the synergy effect is gradually highlighted during the integration,but the development stamina is insufficient in the long run.At the end of this thesis,based on the research results,the thesis objectively evaluate the synergy effect of China Merchants Bank's acquisition of Hong Kong Wing Lung Bank,sum up experience and deficiencies,and enlighten the overseas M&A activities of Chinese banks,and provide suggestions for the followup development of China Merchants Bank,with a view to internationalizing Chinese banks.Hope the road to business is more stable and reasonable.