We analyze the impact of foreign bank presence on foreign direct investment （FDI） in China. The connection between the two couM be particularly relevant for an emerging economy like China because the supply of finan...We analyze the impact of foreign bank presence on foreign direct investment （FDI） in China. The connection between the two couM be particularly relevant for an emerging economy like China because the supply of financial services provided by banks may act as a constraining factor. Foreign bankpresence may then enable and foster FDI and not simply result from it. Our estimates demonstrate that FDI across regions in China is increasing in the existing network of regional branches of foreign banks, which itself is driven （and, therefore, instrumented） by the timing of the regional phasing out of the local limits for foreign banks on local currency business. The effect of foreign bank presence on FDI is particularly strong for some specific sectors （farming, manufacturing, construction, transportation, wholesale/ retail trade and real estate） if those sectors are strongly represented in the source economies.展开更多
China became a member of the World Trade Organization (WTO) in November, 2001.During the three years since then, foreign banks substantially increased their presence inChina. Competition between foreign and domestic b...China became a member of the World Trade Organization (WTO) in November, 2001.During the three years since then, foreign banks substantially increased their presence inChina. Competition between foreign and domestic banks in certain fields is increasinglyvisible. However, the pace of foreign bank expansion in China appears short of earlierexpectations. Chinese banks have in general responded positively and achieved certainprogress in improving their service, yet basic problems remain unsolved in the bankingsystem. Several challenges to Chinas financial system have already surfaced.展开更多
This study investigates how foreign bank/investor penetrations influence local bank performance in China. At the country level, foreign bank penetration is proxied by MacroFP, measured by the percentage of banks with ...This study investigates how foreign bank/investor penetrations influence local bank performance in China. At the country level, foreign bank penetration is proxied by MacroFP, measured by the percentage of banks with foreign strategic investors （FSI） among total banks. At the bank level foreign bank penetration is proxied by MicroFP, measured by the percentage shareholding of FSl in a bank. When foreign bank penetration is proxied by MacroFP, it is found to improve the profitability of local banks but not to reduce costs. Next, when foreign bank penetration is proxied by MicroFP, it is found to affect neither profitability nor costs. In sum, the present study demonstrates that the opening-up policy is correct from a macro perspective, However, for banks that have introduced FSI, determining the reasons for improvements in performance being inhibited is more important than releasing more shares to foreign investors.展开更多
Honoring its WTO commitments, China has begun to allow local incorporation by foreign banks, endowing them with the same status as their Chinese counterparts in an attempt to encourage diversified development in the C...Honoring its WTO commitments, China has begun to allow local incorporation by foreign banks, endowing them with the same status as their Chinese counterparts in an attempt to encourage diversified development in the Chinese banking sector On March 18,展开更多
Having cleared all the hurdles to enter the market, locally incorporated foreign banks declare their intentions to dive into the personal housing loan business in China A battle is brewing between domestic and locally...Having cleared all the hurdles to enter the market, locally incorporated foreign banks declare their intentions to dive into the personal housing loan business in China A battle is brewing between domestic and locally incorporated foreign banks over展开更多
The country's banking watchdog says that to engage in the retail renminbi business, foreign banks must become Chinese legal entities According to China's commitment at its accession to the WTO, as of December ...The country's banking watchdog says that to engage in the retail renminbi business, foreign banks must become Chinese legal entities According to China's commitment at its accession to the WTO, as of December 11 this year, it will fully open renminbi business to foreign-funded banks. However, this does not mean that the 103 China branches of展开更多
文摘We analyze the impact of foreign bank presence on foreign direct investment （FDI） in China. The connection between the two couM be particularly relevant for an emerging economy like China because the supply of financial services provided by banks may act as a constraining factor. Foreign bankpresence may then enable and foster FDI and not simply result from it. Our estimates demonstrate that FDI across regions in China is increasing in the existing network of regional branches of foreign banks, which itself is driven （and, therefore, instrumented） by the timing of the regional phasing out of the local limits for foreign banks on local currency business. The effect of foreign bank presence on FDI is particularly strong for some specific sectors （farming, manufacturing, construction, transportation, wholesale/ retail trade and real estate） if those sectors are strongly represented in the source economies.
文摘China became a member of the World Trade Organization (WTO) in November, 2001.During the three years since then, foreign banks substantially increased their presence inChina. Competition between foreign and domestic banks in certain fields is increasinglyvisible. However, the pace of foreign bank expansion in China appears short of earlierexpectations. Chinese banks have in general responded positively and achieved certainprogress in improving their service, yet basic problems remain unsolved in the bankingsystem. Several challenges to Chinas financial system have already surfaced.
文摘This study investigates how foreign bank/investor penetrations influence local bank performance in China. At the country level, foreign bank penetration is proxied by MacroFP, measured by the percentage of banks with foreign strategic investors （FSI） among total banks. At the bank level foreign bank penetration is proxied by MicroFP, measured by the percentage shareholding of FSl in a bank. When foreign bank penetration is proxied by MacroFP, it is found to improve the profitability of local banks but not to reduce costs. Next, when foreign bank penetration is proxied by MicroFP, it is found to affect neither profitability nor costs. In sum, the present study demonstrates that the opening-up policy is correct from a macro perspective, However, for banks that have introduced FSI, determining the reasons for improvements in performance being inhibited is more important than releasing more shares to foreign investors.
文摘Honoring its WTO commitments, China has begun to allow local incorporation by foreign banks, endowing them with the same status as their Chinese counterparts in an attempt to encourage diversified development in the Chinese banking sector On March 18,
文摘Having cleared all the hurdles to enter the market, locally incorporated foreign banks declare their intentions to dive into the personal housing loan business in China A battle is brewing between domestic and locally incorporated foreign banks over
文摘The country's banking watchdog says that to engage in the retail renminbi business, foreign banks must become Chinese legal entities According to China's commitment at its accession to the WTO, as of December 11 this year, it will fully open renminbi business to foreign-funded banks. However, this does not mean that the 103 China branches of
