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fficiency. For the policymaker who isinterested in improving banking sectors which are both efficient and stable, it is helpful to examine whether there exist significant differences.

There are a few researches about the influence of foreign bank’s entry conducted in China. However, from the result of the previous researches, it commonly shows that the entrance of foreign banks has increased the net interest margin of Chinese banks’, which is contrast to the evidence of other country and cross country studies. There are also limitations of these studies, such as unelaborated analysis or small size, which may have influence on the result. In 2009 Shen et al have sampled 48 Chinese banks and there are other studies (Huang and Qing, 2009; Liu, 2008; Jiao, 2008; Chen and Xiao, 2007) have sampled 13 to 15 banks. Although these studies lack of robustness tests, their common place is the usage of aggregate measures of the foreign company’s entry. They have assumed that all Chinese banks are exposure equally to foreign bank entry. However, in the study of China, it is problematic to regardless the different location.

In Ying Xu’s research (2011), it used the spatially disaggregated measure to analyzethe entrance of foreign bank and its influence on local banking performance. The result shows that the entrance of foreign bank makes the local banking industry more efficient and competitive in China. His empirical research is supportive to the Chinese policy of opening up the banking industry to foreign companies. If the entrance of foreign company is properly regulated and closely monitored, it can improve local banking performance. In the more opening banking industry, it also should be regulated and monitored to ensure the healthy and efficient banking industry, which can contribute to the society welfare and the development of the economy.

According to Leung et al., 2003 and Wang, 2007, foreign banks not only pay attention to the traditional banking business, but also focus on the fee-based banking business and niche markets where they own comparative advantages.Firstly, in China, foreign banks can offer financial services to foreign manufactures operating and companies. Then foreign banks own strong expertise and experience in the foreign exchange and trade finance business. For example, they have played an important role in interbank foreign exchange market since 1994 in China. The total transactions’ volume reached 146.1 billion dollars from 1994 to 2004, which is second to joint-stock commercial and state-owned banks in China. Besides, since the subsequent regulatory reforms and WTO accession, other niche markets are developed by foreign banks in China, including the retail bank business and investment banking, such as credit cards and wealth management. By 2004, there are more than 100 financial products were promoted by foreign banks to their customers in China, which is three times the number that provided by domestic banks.What’s more, sino-foreign co-branded credit cards are issued by HSBC, Citigroup, and Hang Seng bank. It was reported that a lot of local credit card providers have borrowed successfully from the product and marketing design strategies of foreign banks.

In 2008, WeiGuo Xu, DaiPing Hu, AiZhong Lei, HuiZhang Shen had analyzed the FDI chaos and its control in China. They think that in a si本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。