China Merchants Bank: Business Model Transformation

Case Solution

Mingkang Liu, Hugh Thomas, Gang Du
Ivey Publishing ()

The president and CEO of China Merchants Bank (CMB) had led CMB through a decade of rapid development and made two transformations to save capital, develop culture, and meet the financial needs of China’s startups and consumers. Regardless of the successes, however, CMB’s capital constraint was swift and the stock market punished CMB’s shareholders. Slower domestic growth, an uncertain international economy, and increasing regulation by the government increased the challenge for the president: determining CMB’s future strategy.

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