| Abstract | When companies are competing with each other at multiple markets, Multimarket Contact occurs. Comparing with traditional competition research, the theory of multimarket contact reflects the competition situation more actually and dynamically. This paper using 10 Shareholding Commercial Banks in China as a sample, studies how the level of multimarket contacts influencing the profitability of a bank entering compete -tors’ markets, how resource similarity and spheres of influence moderating the relationship between them, and how the level of multimarket contacts influencing the banks’ economic performance. The empirical results show that: (1)the probability of entering into competitor’s markets gets higher as the increase of multimarket contacts, however, the increase of multimarket contacts by chance is uncorrelated with it; (2) the effect of multimarket contacts improve the market entry gets higher, when resource similarity between companies is high; (3) the effect of multimarket contacts improve the market entry gets higher, when the multimarket contacts between companies are reciprocal; (4) the performance of a company gets higher with the increase of multimarket contacts, after controlling other factors. |