In order to expand business. The reason for success is. Due to the failure of investment, Wing Lung Bank has difficulties in operation, which constitutes a good acquisition opportunity. Wing Lung Bank's net profit in 2007 was 65,438+0.365,438+0.4 billion yuan, its total assets profit rate was 65,438+0.54%, and its net assets profit rate was 65,438+0.99%. However, in 2008 1 quarter, the bank suffered a huge loss of HK$ 470 million due to investment failure, while debt-backed securities and structured investment instruments caused losses of HK$ 654.38+92 and HK$ 284 million respectively, resulting in a net loss of HK$ 83 million in 1 quarter, which was in sharp contrast to the net profit of RMB 376 million in the same period last year and became the acquisition target.

2.

Chinese banks have entered the period of overseas expansion. Overseas expansion has brought lucrative overseas markets, stronger service support functions and an unregulated credit growth environment to Chinese banks. The experience of enterprise internal management and organization system, product innovation, retail customer expansion and financial market service can provide reference for Chinese banks.

3.

China Merchants Bank's low bid fully demonstrates its determination to expand overseas and its sincerity in acquisition. The determination of the purchase price includes consideration of the strategic significance of China Merchants Bank, the audited asset structure and quality, the future development forecast after the acquisition and competitive factors. These four factors have raised the price of China Merchants Bank, and the high price is enough to impress Yonglong's "heart".

4.

Special historical and geographical origins led to the success of this acquisition. Wing Lung Bank is a 75-year-old family-owned local bank in Hong Kong, which has been handed down for three generations. In the acquisition negotiation, China Merchants Bank promised to keep Wing Lung's brand for nearly 100 years, and will not dismiss the existing managers for 65,438+08 months after the transaction is completed. In addition, Wing Lung has taken a fancy to the most dynamic joint-stock commercial bank among Chinese banks, and its headquarters is in Shenzhen adjacent to Hong Kong, which is quite attractive for Wing Lung in terms of geographical location. See official website for details.