A Optimization Research On Debt To Equity Investment Strategy Of G Financial Asset Management Company

Recently, the commercial bank’s bad loans scale and bad loans ratio increased a lot, and the asset liability ratio of the industrial enterprise needs to be reduced. As one of the bad loans asset disposal methods, debt to equity swap has been received the social attention since the economic slowdown. While commercial banks hold a large number of bad loans assets, and it is the most important bad loans asset holders, due to the limitations in the management of commercial Banks’ capital and the requirements of financial separate supervision system, it is difficult for the banks to truly improve the quality of commercial banks assets, and substantially interpose in enterprise management. Debt to equity swap is easy to breakdown the legal bottom line of banking financial institutions, and distort the developing mode of banking financial institutions.G financial asset management company is one of the four asset management companies, it has implemented debt to equity swap. On one hand, acquiring the current financial bad loans can resolve the financial risk. On the other hand, screening the bad debt assets, it is profitable to grasp resources of debt enterprise, and seek favorable development way for the enterprise.This article studies the debt to equity swap case of G financial asset management company. And it analyses debt to equity swap’s shortcomings. Combined with analysis and the development of G financial asset management company, this article makes proposal for G financial asset management company of defusing financial risks, promoting the value of assets, enhancing the economic development. Debt to equity swap can accelerate the industrial and the scale upgrade, adjust the industrial structure, and achieve the better resources reuse. Finally, this article considers that debt into equity swap enable G financial assets management company to better fulfill its current social functions, it means that for the backward production capacity, obsoleted capacity that must be eliminated by the official order and so on, the debtors which should be went bankrupt, G financial asset management company should accelerate debt to equity swap, avoiding the middle-income trap. For the high quality assets, G financial asset management company should make full use of debt into equity swap.