Study On The Synergistic Effect Of China Merchants Bank’s Acquisition Of Hong Kong Wing Lung Bank

Under the influence of background of economic globalization,China’s financial opening-up policy and the high-speed development of science and technology,our country’s status in the world is becoming higher and higher.In order to develop the market,improve the international brand,improve performance,obtain synergistic effect,the overseas mergers and acquisitions become one of the most important means for commercial banks to develop itself.Based on the literature review and theoretical review at home and abroad,this thesis takes China Merchants Bank’s acquisition of Wing Lung Bank as the research object and uses the event study method and accounting analysis method to study the short-term and long-term synergistic effects of China Merchants Bank’s acquisition of Hong Kong Wing Lung Bank.It is expected to draw the conclusion that China Merchants Bank can obtain management synergistic effect,operation synergistic effect and financial synergistic effect through merger and acquisition of Wing Lung Bank.The results show that the motivation of China Merchants Bank ’s acquisition of Wing Lung Bank is to carry out strategic deployment,business integration,expand overseas market,increase overseas market share,and improve the international brand awareness.The external macro-environment and the internal micro-environment of enterprise run-in have different influences on the merger and acquisition process of China Merchants Bank,but on the whole the positive influence is greater than the negative influence.In the short term,there is no synergistic effect after China Merchants Bank’s acquisition of Wing Long Bank.In the long term,China Merchants Bank has a notable management synergies and financial synergies after the merger and acquisition,but operating synergistic effect is not obvious,which means that China Merchants Bank’s operating capability,cost control capability,solvency and tax-efficient capability are improved,while the profitability and development capability are not obvious.Based on the above analysis,this thesis puts forward the following references and suggestions on how to improve the synergistic effect after China Merchants Bank’s acquisition of Wing Long Bank: clarify the strategic deployment of overseas merger and acquisition;controlling merger and acquisition costs;realize business innovation and build cross-border financial service platforms.