This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.

Bookmark Email Print page

Banking market entry in China

Last call for foreign banks to enter through M&A?


As interest in China remains high, many foreign banks are evaluating potential market entry approaches to the market. However, the route to entry can be complex – especially to secure a banking license to enable a full scale presence.

The M&A route is an alternative route to enter the market and side-step some of the timeline factors and challenges of building a business from scratch. However, controlling stakes are out – and many legacy issues will need to be dealt with at the remaining banks including NPLs (Non Performing Loans), weak risk management, limited product offering and a legacy of difficulty attracting the best talent.

Compounding the M&A route is a rapidly shrinking pool of targets and rising prices.

This article looks at the basics of entering the market through M&A – and flags some of the key challenges that will need to be grappled prior to completing a deal.

Share your comments


Stay connected