Financial Asset Management Companies In China, Strategic Transformation

Because of the warning of the financial crisis, in 1999 the government set up Cinda, Orient, Great Wall and Huarong four financial asset management corporations (FAMC) to resolve the banking sectors' huge NPL problems. It is proved that the establishment of the China's FAMC has effect on supporting for the reform of commercial banks, making up the deficits of the state-owned enterprises, deepening the reform, improving macroeconomic environment and avoiding financial risks.As the accomplishment of the China's FAMC's mission, the restructuring of the FAMC is inevitable. In the past, a number of deep-seated contradictions and problems were gradually exposed during the operation of the FAMC. It is very necessary to in-depth study the disposition of the bad assets in China and the problems and difficulties which the FAMC are facing. And it is also necessary to discuss reasons why the efficiency of the FAMC is low and explore a more favorable path for their future development. Therefore, this thesis will explore and study the background of the establishment of China's FAMC, the operating mechanism, the problems which they have to face and strategy and ideas of the restructuring. There are two main points of the reform: Investment Banking and Financial Holding Corporation. There is only one way to promote China's economic that FAMC are operated by the market.