The Discuss On The Microcosmic Operating Pattern Of Asset Management Company

Right after China Sinda Asset Management Company declared its establishment on April 20, 1999, so did Huarong, Great Wall and Orient asset management companies in October of the same year. They were to take over a total of RMB1393.9 billion non-performing loans separated respectively from China Construction Bank (by Sinda), China Industrial and Commercial Bank (by Huarong), the Agricultural Bank of China (by Great Wall)and the Bank of China (by Orient). In the second half of 2000, all the four asset management companies had completed the separation and acquisition of non-performing assets.In order to minimize the burden of the State, the four asset management companies are granted, following the international practice, with special legal status and policies, creating favorable conditions that enable them to collect as much non-performing assets as possible by way of special disposition. To achieve this goal, further understanding is needed on the theoretical basis, practical supervision, policy instructions and business operations of the asset management companies together with further prospective exploration in the areas. However, about five years' experience show that the four asset management companies have encountered a series of major problems. These contradictions and issues , such as the undeveloped capital market, the poor foundation of the law est, need immediately to be studied and discussed.Under this background, the article studies the related theory of asset management company, benefits from the experience of such asset management company overseas at the same time and analyzes the problem of the operation pattern of asset management company. Finally the suitable operating pattern of the Chinese asset management company could be determined.