Chase's Strategy of Financing Hong Kong Disney

4732 Words Feb 6th, 2012 19 Pages
1. Chase’s International Strategy and Objectives As the largest bank in the United States by assets and market capitalization, JPMorgan Chase is a major provider of financial services with assets of $2 trillion and according to Forbes magazine is the world’s largest public company based on a composite ranking. Being one of Disney’s top 10 relationship banks, Chase was the third largest bank in the United States with more than $400 billion of assets and $175 billion of loans in 1999, and was a leader in the field of syndicated finance. In 1999, Chase was the lead arranger for 34% of total syndicated loans by dollar volume in the world’s largest market, the United States, compared to 21% for the next largest competitor.6 In the …show more content…
In this rapid growing global market, there are tons of competitions and challenges Chase has to confront, especially in Hong Kong, such a small but complex market. If Chase were so greedy to cover all the financial fields, its competitors will definitely beat it black and blue. Apart from that, Chase has to distinguish itself with other banks, which makes it a unique investment bank not just a commercial bank simply issues loans. Thus, Chase smartly choose to occupy the leading position specifically in the field of syndicated finance, while remain influential in other areas.

2. Country Risk Evaluation – Hong Kong and China Chase bank saw many opportunities in regards to the development of Hong Kong Disney. Although there were many risks and costs involved with the large project, they saw the choice of entering into syndication as an opportunity to expand their operations. Chase saw opportunity to not only help advance their syndication status but to help Hong Kong boost their economy due to the recent recession. As a result of the Disneyland Paris downturn in sales, Hong Kong Disney took on the opposite approach, a more conservative capital structure, which along with the government commitment to the project enhanced Chase’s decision to back the project. The government knew that the tourism industry and employment rate needed a boost and to enable