Case Analysis Of Business Innovation In The Period Of Market Transformation Of A AMC

In1999, in order to dispose the huge amount of non-performing assets of the bankingsystem and guard against financial risks, China learned from international experience andestablished four state-owned asset management corporations (AMCs): Huarong, Great Wall,Orient, Cinda which were given the mission to take over and dispose the bad assets legally.After more than ten-years running, four state-owned AMCs, the policy-based financialinstitutions, have fulfilled their historical mission. Now the AMCs are in the period ofaccelerated transformation. As the key link, business innovation determines successfulcommercial transformation and long-term sustainable development after transformation ofAMCs, further, the successful transformation has far-reaching effect on the stability anddevelopment of the whole financial system. Therefore the present paper research has the greatpractical significance.With case method, the paper firstly reviews the relevant theories of company’s strategictransformation and financial innovation, and then redefines the financial business innovation,taking the A AMC’s business innovation as the breakthrough point. Firstly, paper makes adetailed comparison of four representative business models including their rates of return,pros and cons, innovations and shortages. Then it puts forward some improvement suggestionin order to make these models can be more widely used. In addition, the thesis gives severalsuggestions of solving the problems that A corporation is facing in the process of innovation.In the end, the experience of A’s business innovation is summarized as follows: the strategicposition of establishing a large-scale financial holding group can provide a strong backing forbusiness innovation; diversified financial licenses can enhance the core competitiveness; tokeep innovation, AMCs should be flexible and grasp the chance.