This study develops the conceptual model for explaining Chinese banks’ FDI using a methodology of multicases comparisons. The results which respond to the characteristics of emerging economy and banking indicate: relations with customers, foreign partners and governments, managerial cognition about international market and strategy, and international reputation are the key factors which influence the internationalization of Chinese banks; the special case of China Merchants bank tells us that there exist an asset substitution between marketbased resources such as human capital, marketing and innovation capabilities, and horizontal relations with foreign partners and governments; the special case of Agricultural Bank of China indicates that managerial cognition moderates the effects of horizontal relations on internationalization. The theoretical implications of findings and future research directions are also discussed.