Studying To The Managing Of Bad Assets For Asset Management Corporation In China

China's economy has been greatly developed since its reform and opening-up, great progress has also been made in its banking system. However, large amounts of bad assets were accumulated in banks due to the system of planned economy and some other reasons, which has become a looming hazards for our economic operations. Delayed solutions of those problems will make the matters worse, or even leads to financial crisis, China's Economy may relapse into a perilous dilemma. In light of existing international situations and China's financial reality, State Department took measures to eradicate the financial crisis in our commercial banks, the main problem on the list is bad credit assets. One of the critical solution of this problem is the detachment of bad credit assets from commercial banks, special Asset Management Corporation is funded and investment banks take the charge to dispose precipitated and aggregated bad credit assets; Hereby the problem of bad credit may be rooted up and the reform in state-owned enterprise be promoted.This article first introduces the formation of bad assets in China, state enterprises and systematic financial crisis, then it develops the study on the following aspects based on China's situation and experiences learned from foreign countries. (1) Comparison between different scenarios on treatment of bad assets, it systematically analyses China's specific situation and solution of bad assets in America, Japan and Korea. It also deals with the 9 proposals made by Chinese economists on liability recombination. (2) The management objective and operational technique are introduced into the disposal of bad assets by China's Assets Management Corporations. (3) It thoroughly and systematical analyses the achievement made by China's Assets Management Corporations and problems they are facing. (4) It expounds the impact on China's AMC when China enters the WTO, it brings forward the concept of capital management for China's AMC. (5) It compares the operational patterns between different AMC in foreign countries and inspirations got from their successes. (6) Based on China's situation, it raises up 9 proposals on resolving bad assets, it also put forward 3 suggestions on reforming the structure of property right, such as market launching of single-capitalized merchant banks, placing of equity shares to non-stated owned units, transferring equity shares to foreign investors, etc.This article attaches great importance to the instructional and feasible features of the research, its approaches and methods possesses substantial results. The measures and proposals raised in this article were implemented in actual operations of China's Assets Management Corporations. Accordingly, the generalization and research on the operational mechanism of China's AMC will provide significant reference to the future development of China's AMC.