The investment analysis of international institution investors investing in China's banks
Date Issued
2006
Date
2006
Author(s)
Chou, Christopher L.S.
DOI
zh-TW
Abstract
This research discusses with the upsurge of investing in China’s banks by international financial institutions in recent years through depth interview and case study, in order to understand the strategic thinking of these investors and analyze about the purchase price of China’s banks, possible investment benefits and investment risks. And finally, give some suggestions and development strategies to the Taiwanese bankers having interests on investing in China. Research results are summarized below:
1. Foreign investors’ main strategic thinking includes increasing the stronghold due to the difficulty of increasing new branch; In purchasing prices, the prices that foreign investors are willing to offer is relatively low to the four major national banks, nearly lying between 1.15~1.2 times of P/B Ratio, the purchase prices of non- four major national banks are relatively high, is about 1.5 times of P/B Ratio.
2. Foreign investors’ possible investment benefits include underwriting commitment and capital profit from stock price rising in the short-run, and increasing the distributions and expanding the business in the long-run; possible investment risks include the political risk, difficult to obtain essence control power, the bad debt and risk control ability.
3. For Taiwanese bankers having interests on investing in China, the main advantage lies in the language, culture and Taiwanese trader who has already invested in China; The greatest obstruction for the Taiwanese bankers to invest in China comes from the influence of politics. If the political restriction politics can be removed, there are some development strategies for Taiwanese banker including relying mainly on consumer banking, trade financing, and regard financing of small and medium enterprise in China as market separation.
Subjects
大陸銀行
購買價格
International investment
Purchase price
Type
other
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