Research On The Performance Of China Citic Bank’s Acquisition Of Altun Bank

With the continuous deepening of the construction of the "Silk Road Economic Belt" and the "going out" strategy of Chinese enterprises and the increasing opening of China’s capital market,offshore RMB business has developed rapidly,resulting in a large number of commodity trading and capital market trading needs.Since 2008,local Chinese companies have actively joined the wave of cross-border mergers and acquisitions,many of which have acquired tens of billions of yuan.Cross-border M&A of enterprises is one of the most effective and convenient ways to enhance their own strength and go abroad to face overseas markets.Domestic commercial banks have also begun to adopt this method,from the beginning of the state-owned big banks to buy and buy overseas,to today’s Domestic joint-stock banks have been active in overseas mergers and acquisitions,and they have blossomed everywhere,but behind the rising number of mergers and acquisitions,the economic performance has been uneven.On the one hand,China is still a developing country.In cross-border mergers and acquisitions,the market development is weak,and domestic commercial banks have started late.The lack of theory and experience makes domestic commercial banks less successful in overseas mergers and acquisitions.At present,China’s development stage requires domestic enterprises to go out more,and the low success rate of cross-border M&A by domestic commercial banks will bring adverse effects.Therefore,according to China’s national conditions,it is of theoretical and practical significance to study the theory and operation model of successful mergers and acquisitions and to summarize the experience of cross-border mergers and acquisitions by Chinese commercial banks.The article captures the main case of the CITIC Bank ’ s acquisition of a 60% stake in a bank in Kazakhstan,which was spawned by the“Silk Road Economic Belt” initiative,and analyzes the factors affecting the economic performance,cross-border M&A motivation and performance of domestic commercial banks’ overseas M&A On this basis,it provides inspiration for overseas mergers and acquisitions of domestic commercial banks.Provide the feasibility of CITIC Bank’s "regional" development competition strategy.Finally,China Joint Stock Bank puts forward feasible suggestions in the "regional".Multinational mergers and acquisitions mainly follow the relevant national support policies,which are in line with the development characteristics of their own merger and acquisition strategies.The goal is to cultivate core competitiveness.The article first explains the significance of this case study in the context of the "SilkRoad Economic Belt".Then,the related theories and literatures on cross-border M&A of domestic and foreign commercial banks are sorted out.Afterwards,a detailed analysis of the merger and acquisition case of CITIC Bank’s merger and acquisition of Altyn Bank was carried out from the background of the merger and acquisition,the motivation of the merger,the merger process,and the integrated analysis after the merger.After that,the indicator system is constructed for the empirical part of the article,mainly based on the "three principles" of commercial banks.In addition to the three properties,indicators that reflect the development status of the bank are added.The factor analysis method is used to conduct empirical analysis on the 14 indicator data collected in the 7 annual financial statements before and after the merger and acquisition,and then the financial analysis method is used to quantitatively evaluate and analyze the financial performance changes of CITIC Bank before and after the acquisition of Altyn Bank.Through the above analysis,it can be concluded that the performance of the merged CITIC Bank has not improved much,and there is much room for growth.The scale of assets,labor efficiency and management level continue to improve.Although its capital adequacy ratio,return on total assets and return on net assets both declined in the year of the merger and acquisition,it has improved in the second year of the merger and acquisition and the overall performance has improved.From the perspective of strategic value,the acquisition successfully expanded the overseas market of China CITIC Bank and accelerated the internationalization process of China CITIC Bank.Finally,through the above analysis,reasonable suggestions are proposed for the cross-border mergers and acquisitions of China CITIC Bank and other Chinese banks.