By Zhang Liping, Research Team on “The Opening-up Strategy of China with the Support of a Remarkably Strengthened Economy”, DRC

Research Report No.22, 2016 (Total 4905)2016-03-11

Abstract: In recent years, China’s financial institutions have rapidly improved their capital strength and the globalized level, bolstered by enterprises’ “going global” strategy and strong government policies. Financial institutions, mainly banks, have made more efforts to station overseas offices, enabling remarkable rises in both overseas assets, profits and the staff number. China’s FDI stock of the financial sector exceeded 130 billion dollars in 2014. However, in terms of the market structure and overseas business structure, China’s financial institutions’ capabilities still remain weak in expanding overseas business and integrating resources in the international financial market. For example, their overseas markets are mainly confined to Hong Kong, and the M&A programs involved with are limited to “Chinese elements”. Generally speaking, the pace for China’s financial institutions to get internationalized is very fast, but this internationalization progress lags far behind the globally advanced level. In the future, we should proactively guide financial institutions to further improve their capabilities for international operation so as to lay a solid foundation for enhancing China’s influence in the international financial system.

Key words: opening-up strategies, financial institutions, international operation