Overseas Strategic Layout of ICBC ——Case Studies Based on Real Options Perspective

Strategic investment is always regarded as a high-risk and long-period behavior. The real option theory, which takes the value of investment opportunities into consideration, is an appropriate method in analyzing the strategic investment. To discuss how the real options theory can be applied in ICBC’s overseas layout strategy, we investigate its overseas expansion process during the past 20 years in the perspective of real options theory, conclude three typical investment opportunities, and analyze their option characteristics with “option chains”.