The Development of Banking System in Mainland China and the Study of Entry Strategies of Taiwan Bankers Entering Mainland China
Date Issued
2006
Date
2006
Author(s)
Ke, Tzu-Ling
DOI
zh-TW
Abstract
In near these decades, the financial liberalization and internationalization are main directions of the financial industry’s development t in the world. Due to the new trend of international finance and the competitions faced after the accession to the WTO, banking liberalization and internationalization certainly will become the trend of financial system’s development of Taiwan in the future. Mainland China has begun financial reforms since 1979. In 1992, subsequent to Deng Xiaoping’s “southern tour”, reforms and economic growth in both, theory and policy, gained more momentum. The efforts were focused on developing a market-oriented financial system. In November 2001, Mainland China officially became a WTO member, signifying the country’s financial and trade systems were moving toward internationalization. After joining the WTO, Mainland China has to open the domestic financial market to offshore financial institutions. Taiwan banking sector have to face the advantage of the foothold expensing for local banks and the competition of head start by foreign capital banks when they are trying to build the offices in China.
This paper begins from the target market first, and makes in-depth analysis to the development of banking's reform and gradual progress of Mainland China. And then discusses the changes of relevant financial decrees and environments between China and Taiwan to explore the entry modes that suiting with Taiwan banks entering the financial market in Mainland China.
Through the analysis, we concluded three possible entry modes that Taiwan banking sector may adopt to facilitate operation in China: setting up the branch directly, investing in the commercial bank of China, entering the continent market via CEPA. However, no matterh entering the mainland market through Hongkong or Macro in the future, or upgrade the office which Taiwan set up in the Mainland to the branch directly, the topic of local banks setting up branch offices in the Mainland touches on financial regulations which are still under evaluation. Therefore, we bring up the way of credit guarantee instutition, financial leasing company and credit card strategy alliance in addition.
Finally, we proposed the following suggestions:
1. From the government's view:(1) Open the restrictions of banking to go to China, (2) Sign “The memorandum of cross-strait finance and manage” as quickly as possible, (3) Consult with China actively, (4) Pay attention to the cultivation of the national economic strength.
2. From the banking's view:(1) Build and construct the financial service platform, (2) Utilize the advantage and farsighted views, (3) Make good preparations for going to China at any time.
Subjects
大陸銀行業
進入策略
Taiwanese Banking
Mainland Banking
Entry Strategy
SDGs
Type
thesis
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