Research On The Question Of Non-Performing Assets In Chinese Securities Business

The non-performing assets is the unavoidable result in the economical operation course, and a world question. The non-performing assets reduces the quality of the company's assets,reduces company's income, reduces the mobility of the assets, increases company's risk, so has been following the prevention and treatment of the non-performing assets all the time in the business activities of enterprises. U.S.A. began the research on the non-performing assets at the latter stage of the eighties of the 20th century, because the global banking's crisis which caused by the huge non-performing assets made the question of the non-performing assets become the focus of the financial circles. Asian financial crisis in 1997 has fully exposed the risk effect to financial circles of existence of a large amount of non-performing assets even more. Asian countries actively seek the effective treatment way of the non-performing assets and prevention mechanism. The non-performing assets of the financial circles of our country mainly concentrates on the state-owned commercial banks, theoretical research and practice in non-performing assets are mainly about the banking circles. But with the development of the national economy, the security market is playing a very important role in widening the channel for investment and financing, standardizing the market, advancing the setting-up of the modern enterprise system. But as the market main body, the securities companies face the puzzlement of the non-performing assets which increase following the scale of the assets. The total value of the non-performing assets in the national securities companies accounted for over half of the total value of the net assets in 2002. High proportion of the non-performing assets reduce the securities companies' profit, increase the bankrupt risk, produce chain reaction and make many securities companies face awkward situation after counting the loss provision of the non-performing assets. If we can't effectively treat the question in time, it will inevitably effect the development of the security market and the national economy. But the domestic research on the non-performing assets of securities business is in blank state, this text just carries on systemic studying to the non-performing assets of the securities business of our country on the basis of this kind of current situation. The research include the current situation of the non-performing assets, origin cause of formation, its effect to the enterprise value, the treatment mode and policy recommendations, etc.. We expect to strengthen the knowledge of non-performing assets of securities business of the whole society, arouse the government's attention, and carry on deep research and discussion in the non-performing assets, find the best treatment mode and benign handling mechanism of the non-performing assets of Chinese securities business.Chapter one carried on the total summary to the non-performing assets, provide more clear definition of the non-performing assets at first, namely the assets that has no ability to produce economic benefits or has weak ability to produce economic benefits within some future period, and has the possibility of promoting the profit ability once the external condition change. We point out that the non-performing assets is a result of the economical operation course, its emerge has its own regularity and certainty. Financial circles is the field in which the non-performing assets relatively concentrates, especially banking non-performing assets is the largest. After analyzing the state of banking non-performing assets, we clarify current situations of the non-performing assets of Chinese securities business, and give the computing technologies of non-performing assets.In chapter two we give detailed analysis of the non-performing assets of Chinese securities business, including current situations and subjective and objective reasons. We then calculate the quantity of the non-performing assets according to the computing rule of net capital. The non-perform...