On The Legal Status Of China's Financial Asset Management Companies

As the core of modern economy, finance is playing an increasingly important role in the modern economic life. With the rapid development of the financial industry, coupled with the impact of political, economic and market changes, many countries and regions have experienced diverse financial risk or crisis, which to some degree influenced these countries and region's economic development and social stability. Especially since 1980s, in the background of financial globalization, financial instrument innovation and economic restructuring in some countries, financial risks occurred in increasing frequency and reached more and more widely. According to pertinent statistics, since 1980, more than 120 countries have experienced serious financial problems, resulting in huge funds spent up to 2500 billion dollars to solve the financial problems. There are several reasons for financial risk or financial crisis, however, the more general and prominent one is that in some countries and regions there were existing huge non-performing assets in banks. This phenomenon is serious in our country as well. Taking the state-owned commercial bank for example, according to the statistics of the People's Bank in the end of 1998, the total amount of non-performing assets of was as much as 2.2898 trillion yuan, accounting to 25.37% of the total 9.825621 trillion yuan in loans, while private and foreign scholars estimated was 35% or more. This percentage was far away from the Basel's requirement of below 10%,, and the total amount of non-performing assets was even more than that of Bank of China, namely 2.231714 trillion yuan.As a result, financial asset management companies came into being. But since the initiation of the financial asset management company, its legal position have been a complicated problem. At present, China's financial asset management companies are faced with business transformation, and its present and future development is worthy of our attention and study.With this mission, the author of the essay "Financial Asset Management Companies in China's Legal Position" , desires to carry out a deeply investigation on this topic.This article is divided into three parts, namely introduction, body and conclusion.