An Analysis Of The Strategic Positioning And Operating Status Of Local Asset Management Companies

In recent years,the national economy has been in the stage of transformation and upgrading,and the structural reform on the supply side gradually goes deeper.With the increasing pressure of the macroeconomic cyclical downturn,China’s balance of non-performing loans and nonperforming loan ratio that are represented by commercial banks and other financial institutions have both shown an increasing trend,which not only brings obstacles to the transformation and upgrading of the enterprises themselves,but also brings negative effects to the economic development of our country in the new period.Therefore,enterprises and institutions represented by commercial banks are in a strong need of getting rid of non-performing assets,while original China cinda asset management co.,LTD.,China huarong asset management co.,LTD.,China Orient asset management co.,LTD.and China Great Wall asset management co.,LTD.(hereinafter referred to as Cinda,Huarong asset,Oriental assets and Great Wall assets)are apparently unable to deal with current stock of accumulating non-performing assets.Against this background,to prevent the occurrence of regional or systemic financial risks,asset management company(AMC)comes into being.Non-performing assets industry is an extremely critical link in the financial industry chain.After more than 20 years of development,this industry has formed a force that cannot be easily ignored in China,which plays a huge role in dealing with non-performing assets and financial systemic risks.Developed up to now,four traditional asset management companies are on the path of the comprehensive fubon group and get involved in other financial institutions.However,in the face of China’s financial markets,financial firms’ market are now gradually being stable.Four asset management companies that deals with non-performing assets turn to be David’s deer,which causes frequent loss of state-owned assets in a weak economy.What is more,some of the companies have been turned into the seminary of corruption.As a result,in recent years,in the area of national decision-making,society,and academic community,development model of the four asset management companies have been doubted.The generation of local asset management company is a key supplement made by our government of the bad assets industry,as well as a correction in non-performing assets.It breaks oligopoly structure made by four asset management companies,and has great meaning to enlarge the degree of industry competition,providing a shot in the arm for the bad assets.This paper is based on status quo of the bad assets,taking the comparison of local asset management companies and the four asset management companies as the breakthrough point,applying the perspective of local asset management company and comparing local asset management companies and the four asset management companies in various ways that conclude their development history,profit structure,business scopes and disposal methods etc.This paper mainly discusses methods of differentiated development for AMC in this round of non-performing asset disposal cycle with On strengthening the supervision and administration of local asset management company work notice issued by China Banking Regulatory Commission,and making rewarding exploration of business mode and direction of local AMC.At the same time,this paper also uses cases analysis method to analyze the development trend of local non-performing assets in the future,which is studied on the base of cases of strategic development of H assets.According to discussion above,this article makes in-depth comparison of the four AMC on the basis of development of local AMC to discover its advantages.While discussing the bad assets disposal of general,this article emphasizes particularity of it,then backs up the claim with H assets cases,in order to solve problems that against the development of current local asset management.