Financial Risk Management Of The Commercial Transformation For Afinancial Asset Management Corporations

During the 1990s, in order to maintain financial stability and security, Chinese government decided to establish 4 AMCs(namely China Huarong Asset Management Corporation, China Great Wall Asset Management Corporation, China Orient Asset Management Corporation and China Cinda Asset Management Corporation)to acquire, manage and dispose the part of NPLs which were transferred from 4 commercial banks(namely Industrial and Commercial Bank of China, China Construction Bank, Bank of China, Agricultural Bank of China).At that stage, Chinese government preliminarily drafted the life span of 4 AMC to be 10 year. The 4 AMC soundly fulfilled the policy-oriented NPL disposition task designated by the Ministry of Finance, making great contributions to in support of state-owned enterprises and state-owned commercial banks reform tired and avoid financial risks. The 10 years life span drafted before has arrived. form 2009, AMC began to enter commercialize transition period. At present, AMC are engaged in relevant to asset management business. during the Commercialization Transition Period, there are scope of business expansion problem of 4 AMC, there asset management and control scope are variety; asset quality is uneven, some good and some bad; financial management and control level is not simple lump together. at the same time of innovation in the businesses, there source of income is more extensive and varied; at the same time of improve profitability, there business and management cost has always been high; at the same time of expand business scope, there financial management and control capability of unprecedented weakening. Commercial Transformation brought new vitality, new benefits for AMC, but also brought a new round of financial risks.This thesis combines the daily practices with basic accounting, economic and financial theories, With working practice, Combined with case, by qualitative analysis, theoretical analysis, comparative analysis and other methods, research financial risk's characteristics, causes and Prevention by Transition period AMC. Put forward feasible solutions of the internal management, external supervision and policy suggestions.hope to be helpful to AMC financial risk management.