Research On Business Model Transformation Of Local Asset Management Companies Under The Situation Of Strong Supervision

Since China's economy has entered into a period of new normal,the scope of non-performing loans in the banks of China has expanded by a big margin.Under the circumstances,new steps have been taken in the regional AMC(asset management company).Motivating by national policies,AMC play a significant and positive role in the counter-cyclical regulation,which manage non-performing assets,revitalize the stock of assets,guard against financial risks and maintain a rapid growth in the real economy.AMC turn into the emerging cornerstone of financial stability.However,accompanying with the rise of AMC,problems appear—extensive economic growth pattern,the fuzzy demarcation line of business,etc.Without government regulation,the phenomena of violations and irregularities which committed by some business operators in the market emerge.On July 5th,2019,China Banking and Insurance Regulatory Commission released Notice on Strengthening the Regulation of Regional AMC,which marks the arrival of the era of strong supervision instead of hand-off supervision.The change on supervision have a great impact on the local AMC mechanism,and local AMC give priority to upgrade the business model.The thesis is meant for XAMC,analyzing the transformation of local AMC with the deepening of current financial supervision,discussing the methods to promote the business strategy of the distressed investment,expanding the market and profit growth point in conformity with legitimacy and compliance,reducing the uncertainty and the shock of strong supervision in the real earnest,and ensuring the well-organized and benign operation towards the enterprise in the long run.The thesis reviews the developing progress of local AMC,keeps track of the policy of supervision and analyzes its policy environment by Michael Porter's five forces model.In addition,the thesis presents the comprehensive situation,the main business,and the status quo of individual XAMC,analyzing the opportunity and treats by SWOT,illuminating bottleneck problems which strong supervision bring,such as the stress on the acquisition and disposal of NPL and pressure on the fixed income investments from strong supervision,difficulty in financing and homogenization in the disposal of NPL.In closing,the writer propounds several advice as follow: firstly,locating clear and suitable strategic position,insisting on the professional asset management system.Secondly,adjusting to the regulation,improving the organizational structure of XAMC initiatively according to the reality.Thirdly,focusing on the elaborative,high-quality and unstructured NPL management,especially enriching the approaches to improve the capacity of production operation.Fourthly,exploring new methods of the structured NPL management actively.Fifthly,developing new growth poles like supply chain,debt-for-equity swap or capital market investment.Sixth,expanding financing channels so as to ensure uninterrupted access to funds.Seventh,strengthening the construction of risk management system.