| Summary: | 碩士 === 國立臺灣大學 === 會計與管理決策組 === 102 === The Taiwan Government and China signed the Cross-Strait Memorandum of Understanding (MOU) on November 16, 2009, and the Economic Cooperation Framework Agreement (ECFA) on June 29, 2010 respectively. This marks a new milestone in cross-strait economic relations, and opens the door for Taiwanese-funded banks to enter the Chinese financial market. And in light of the Sunflower Student Movement which began on March 18, 2014, the Cross-Strait Service Trade Agreement (CSSTA), which would benefit Taiwanese-funded banks in their entry into the Chinese market, has been delayed for a time. How should Taiwanese-funded banks adjust their strategy in entering the market? At this juncture we provide Taiwanese-funded banks with this study, with the following objectives:
What are the advantages and business opportunities that emerge for the Taiwanese-funded banking industry, from the signing of the CSSTA? What challenges will be faced in the current situation in China? The present study would like to provide suggestion to Taiwanese-funded banks with regards to investment and operation in China, entry strategy, client goals and expansion, through the case study of Bank SinoPac’s strategies in the Chinese market.
Through literature analysis and case study, the present study aims to investigate new developments in light of the MOU, ECFA, and CSSTA, and the various entry strategies that Taiwanese-funded banks could take in the Chinese banking market. In-depth interviews were conducted with high-level decision makers in SinoPac Holdings, exploring developments in placement strategy, where they stand in the competition, and forecasts in profits and distribution of resources.
The present study has 3 findings:
1.The establishment of branches and subsidiaries, and the transition from branches to subsidiaries, will be the primary method of entry by Taiwanese-funded banks into the banking markets in Mainland China.
2.The placement strategy for Taiwanese-funded banks in the banking markets of mainland China would begin in the Yangtze River Delta of Shanghai, Suzhou, and Kunshan, and the Pearl River Delta of Shenzhen, where many Taiwanese businesses are already congregated, then moving towards the Western Taiwan Straits Economic zone of Fujian and Wuhan, gradually working its way to more inland cities.
3.The proactive establishment of inter-strait exchange of the RMB and points of operation in the Free Trade Areas would benefit Taiwanese-funded banks in doing business in the RMB.
The study gives the following four suggestions:
1.In the face of China’s large internet consumer market, Taiwanese-funded banks should seek strategic partnerships with third-party online payment services, in order to establish cross-strait online business and financial services.
2.In addition to meeting the business needs of Taiwanese-funded businesses in China, as China’s industrial structure policies change, banks should support the innovations of Taiwanese businesses, transitioning from OEM and outsourcing to mainstream services.
3.As the problems of stability in the Chinese financial market persist, banks should remain aware of these risks.
4.The establishment of channels of dialogue should accelerate the review process of the CSSTA, stimulating business and finance, in time with the opportunities of the market.
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