Introducing　foreign　strategic　investors　is　a　vital　step　in　China＇s　ownership　reform　of　commercial　banks.　Using　data　from　81　commercial　banks　in　China　between　1995　and　2010,　we　investigate　the　effects　of　introducing　foreign　strategic　investors　and　ownership　structure　on　net　interest　margins.　Three　primary　results　emerge.　First,　introducing　foreign　strategic　investors　reduces　net　interest　margins.　Second,　state-owned　commercial　banks　have　lower　net　interest　margins　than　non-state-owned　commercial　banks.　Third,　we　also　find　the　effects　of　introducing　foreign　strategic　investors　on　net　interest　margins　in　state-owned　commercial　banks　are　weaker　than　those　in　non-state-owned　commercial　banks.　These　results　passed　robustness　tests.