Analysis of Long-term Investment Decision-making Problems of Industrial and Commercial Bank of China
DOI:
https://doi.org/10.71204/nkect757Keywords:
Industrial and Commercial Bank of China, Long-Term Investment, Investment Decision-Making, Financial Management, Risk Control, Cash-Flow ManagementAbstract
This paper takes Industrial and Commercial Bank of China Limited (ICBC) as the case company and analyzes the long-term investment decision-making and financial management issues of commercial banks. Based on the case materials concerning ICBC’s investments in technology finance, green finance, inclusive finance, pension finance, and digital financial infrastructure, the paper organizes indicators including the scale of long-term investment, the proportion of financial-asset investment, return on investment, investment payback period, net present value, and internal rate of return from 2022 to 2024. It further evaluates the actual effects of long-term investment decision-making from the perspectives of changes in investment scale, investment structure, return levels, cash-flow recovery, and risk management. The study finds that ICBC’s long-term investment is characterized by relatively strong strategic alignment, broad investment coverage, significant digital empowerment, and a solid risk-control foundation. However, the growth of long-term investment has not been accompanied by a corresponding improvement in investment efficiency: ROI, NPV, and IRR have all declined; the proportion of financial-asset investment remains relatively high; new investment projects do not sufficiently consider micro-level variables such as cross-border regulation, peer competition, and transaction volume; and some projects face prolonged cash-flow recovery periods and insufficient post-investment management. In response, this paper proposes optimizing the structure of financial and non-financial investments, improving a multidimensional investment evaluation system, strengthening cash-flow budgeting and maturity matching, and establishing dynamic risk-warning and post-investment evaluation mechanisms. By incorporating strategic objectives, financial indicators, cash-flow management, and risk control into a unified decision-making framework, commercial banks can further improve the efficiency of long-term fund allocation and achieve a better balance between returns and risks in a complex operating environment.
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