China Cinda Asset Management Corporation To Develop Countermeasures

By analyzing CCAMC's current situation and sorting out primary factors restricting CCAMC's development, this paper thinks that present time is most favorable to CCAMC's development and strategic transformation. After comparison with overseas AMC development mode and exploring experiences that may be used by CCAMC for reference, this paper indicates a commercialized and urbanized route for CCAMC with a strategic objective to grow into a worldwide renowned investment bank, and establishing tactics based on this objective and actual situation. CCAMC's property system reform and shareholding reconstruction will be different in step than those state-owned commercial banks. It is advisable to directly introduce internationally famed investment banks and domestically distinguished private enterprises to allow its property to be shared and then go public at home or abroad on this basis. Market development and existing business restructuring will be carried out to the concept "market oriented, customer first, and innovation foremost", molding a differential brand name in respect of financial product and service and forming its distinctive business and core competitive power in disposal of bad financial assets and integration with other investment banks and innovative application. At the same time, exercise dynamic staff management, formulate a systematized income allocation system and an effective encouraging mechanism, strengthen organizational framework for risk monitoring, establish a project risk management system and a graded risk alarming mechanism, and mold an enterprise cultural with its own specialty, and allowing it to be one important part of core competitive power. With respect to suggestions to policy, it is proposed to take CCAMC as a specimen for commercial transformation, so as to work out a model scheme for sharing final loss due to disposal of bad financial assets, and create a new method for capital fund supplement. It is also advised to enact Financial Assets Restructuring Law to normalize the disposal of bad financial assets. Different policies will be conducted according to different situations of the enterprises that are trying to transfer their debts into stock, e.g. continue to carry out "converting debt into stock" in combination with establishing a model enterprise system, or consider "converting stock into debt".