Research On Diversification Strategy Transformation Of Huarong Asset Management Company

The four major financial Asset Management Companies (AMCs) of China were founded after the 97 Asian financial crisis. Fro years of operation, AMCs successfully reduced the Non-performing loan ratio, defuse financial risks and support the reform of state-owned enterprises. After the historical mission was successfully completed, AMCs did not went to the end. The AMCs have to reform to confront the complex international economic and financial environment.China Huarong Asset Management Co., Ltd is one of the AMCs, after more than ten years of development, Huarong gained the top positon of AMCs. The successful experience of Huarong AMC is choosing the commercial and diversified mode. And the choice was affected by both external environment, and is the inevitable internal conditions.The mode of diversified financial holding group has been practiced for many years by Huarong AMC, The purpose of this paper is to aim and summarize the problem which was exposed during the transition. There are three research methods of the paper, the external environment research, the internal conditions research and SPACE Matrix Analysis, which exposed the difficulties and potential risks of Huarong AMC, and the paper summarize six working suggestions and two policy recommendations which was based Huarong experience, and any enlightenment for the same trade or business will be the best applauded of the paper.