Analysis Of "Liability Converting To Equity" Problems And Research On The Strategies

Because of historical and management reasons, there are formed a great number of imperfect assets between commercial banks and State-Owned Enterprises in our country. "liability converting to equity ", is the main mode used by the Asset Management Company settling liability. That Liability converting to equity becomes a economic reform policy, which shoulders two missions that is to vivid State-Owned banks' imperfect liability and to facilitate State-Owned Enterprises getting rid of dilemma. However, a great deal of problem may be fell across during "liability converting to equity", such as operational mechanism puzzle and scarcity of principal injected by government. During the course of asset management and settlement deepening Asset Management Company may meet with hardness in managing and operating enterprises, such as many problems may be unsolved in revaluating scheme and restructuring new company, the operation in new company built from "liability converting to equity" is very normal, policy obstacle occur because un-matching of "liability converting to equity" policy. there exists malpractice on examining the performance of asset settlement in "liability converting to equity".From the aspects of property rights system, management mechanism, interest mechanism, etc, the paper has analyzed the reasons for the formation of "liability converting to equity" problem. In order to consummate the" liability converting to equity" operation and to solve the faced difficulties, the thesis consider that it is necessary to understand the function and status of "liability converting to equity" from the view of economic environment, the dilemma faced with during State-Owned Enterprises reform and the juvenility of capital market. Comprehensive policies should be made out and many existing policies should be made perfect in order to clear the targets on "liability converting to equity" of Asset Management Asset Company, to perfect its function and management-supervise mechanism, to realize the strategic restructure of State-Owned Enterprises and the strategic integration of State-Owned economy distribution, to wide the equity exiting channel, to foster medium agencies vigorously, to achieve information spreading smooth.