Established in 1996, China Minsheng Banking Corporation Limited (“Minsheng”) was the first private commercial bank in China. By 2006, Minsheng had nearly U.S. $ 130 billion in total assets acquired and founded nearly 330 bank branches throughout the nation. The Banker magazine consistently praised Minsheng development, which they number 310 in the top 1,000 commercial banks in the world in 2004, the number 287 in 2005, and the number 247 in 2006. In March 2008, Minsheng received the green light from … Read more »

Established in 1996, China Minsheng Banking Corporation Limited (“Minsheng”) was the first private commercial bank in China. By 2006, Minsheng had nearly U.S. $ 130 billion in total assets acquired and founded nearly 330 bank branches throughout the nation. The Banker magazine consistently praised Minsheng development, which they number 310 in the top 1,000 commercial banks in the world in 2004, the number 287 in 2005, and the number 247 in 2006. In March 2008, received the green light from the China Minsheng Banking Regulatory Commission to buy a 4.9% stake in the U.S. bank holding UCBH Holdings, Inc. (“UCBH”) for U.S. $ 95.7 million. The deal would eventually take stake in Minsheng UCBH to 9.9%, amounting to approximately U.S. $ 200 million. The acquisition not only distinguished Minsheng first institution in mainland China, invest in a U.S. bank, but was also considered a milestone for the Chinese banks in the United States and international markets. On the other hand, UCBH would soon take this opportunity to make his own moves in China, Minsheng uses its affiliation to other Chinese banks totalingacquire. This case examines the process of international expansion through acquisitions in the banking sector and the Bank’s position in a growing global market, covering topics such as value added, impact of government regulation and international trade barriers, the Chinese banking sector and its development, and the associated risks.
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from
Ricky Lai,
Gerald Yong Gao,
Jiangyong Lu,
Gay Hung Fung
Source: University of Hong Kong
18 pages.
Release Date: 5th June 2008. Prod #: HKU751-PDF-ENG
Minsheng Bank: penetration into the U.S. market through the acquisition HBR case solution

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