Choosing Entry Mode to Mainland China

The Economic Cooperation Framework Agreements (ECFA) is an agreement between the Republic of China (Taiwan) and People's Republic of China (Mainland China), which was signed on June 29, 2010. The ECFA can have a far reaching impact on bilateral businesses relationship of the two parties, further strengthening the financial infrastructure and enhancing financial stability. Currently, thirteen Taiwanese banks meet the capital adequacy or stake acquisition requirements in the mainland China; on the contrary, five mainland Chinese banks meet the capital adequacy and operation experience requirements for opening a representative office in Taiwan. Consequently, a merger of banks and related options between the two regions are under discussion. In a review of the ECFA and other reports, Taiwanese banks will be able to progress further on the banking business in the mainland market within 2 years. However, there are still many uncertainties and questions concerning bank characteristics after ECFA; such as competitive position, market efficiency, long term returns and dimensional stability. This paper investigates theoretical and empirical studies and application of PESTEL analysis on the major factors in the macro environment of China. Specific attention is made in regards to the securities, banking and insurance aspects. The vital finding of this study is investigation of the entry mode strategy for the Chinese market with a long-term vision to foster into global competition. Finally, in order to intensify the competitive advantage, this paper explores a viable model for Taiwanese Banks to structure their products and services upon. The result of this study has important implications for the Taiwanese bank management in guiding a successful market entry into Mainland territory.

並列關鍵字

Taiwan ； Mainland China ； model ； banks and financial institution ； ECFA

參考文獻

Berger, A. N., Hasan, I., & Zhou, M. (2009). Bank ownership and efficiency in China: What will happen in the world’s largest nation? Journal of Banking & Finance, 33, 113–130. doi:10.1016/j.jbankfin.2007.05.016

Chang, Ph. C., Jia, Ch., & Wang, Zh. (2010). Bank fund reallocation and economic growth: Evidence from China. Journal of Banking & Finance, 34, 2753–2766. doi:10.1016/j.jbankfin.2010.05.015

Chan. K. C., Fung. H. G., & Thapa. S. (2007). China financial research: A review and synthesis. International Review of Economics and Finance, 16, 426-428. doi:10.1016/j.iref.2005.09.004

Chen, A., & Kao, L. (2010). Effect of collateral characteristics on bank performance: Evidence from collateralized stocks in Taiwan. Journal of Banking & Finance. doi:10.1016/j.jbankfin.2010.08.001

Focarellim D., & Pozzolo, A. F. (2008). Cross-border M&A in the financial sector: Is banking different from insurance? Journal of Banking & Finance, 32, 15–29. doi:10.1016/j.jbankfin.2007.09.002

國際替代計量

Choosing Entry Mode to Mainland China

全文下載

主題瀏覽