Study On The Strategy For The Transformation To Financial Holding Group Of China Orient Asset Management Corporation

After the Asian financial crisis, in order to solve the enduring problem of the mountains of non-performing loans in our country's bank system the state council established China Cinda Asset Management Corp, China Huarong Asset Management Corp, China Orient Asset Management Corporation and China Great Wall Asset Management which were responsible for purchasing, managing and disposing the non-performing loans from the four state-owned commercial banks. When the four financial asset management corporations completed the political missions, the government established new goals for their development and required them running in a market-oriented direction. Nowadays China Orient Asset Management Corporation (COAMC) exposes some problems in the procession of market-oriented transformation which can become major obstacles for the further development. For this we focus on the resolving of the problems faced by COAMC in order to promote the transformation to a financial holding group of COMAC. The study on market-oriented transformation is meaningful for COAMC's long-run development, neutralization of threats to financial system, ensuring the health of national economy and promotion of financial reform.This paper outlines the establishment background and the current operating situations of COAMC, defines the transformation goals by literature research method. We find some problems, including the deficiency in the system design, the imbalance among branches, concerning about local interest, the weak faculty and the lack of incentive mechanism faced by wholly state-owned company. We introduce the successful experiences of similar asset management corporations and focus mainly on Korean asset management corporations and the case of Citigroup's reform. On this basement we refine guidelines for the transformation to financial holding group of COMAC. We analysis strengths, weakness, opportunity and threats faced by COAMC face with SWOT method for the further discussion about problem solving. In the end we make practical suggestions, including shareholding- system reformation, diversification of branched, strengthening the coordination effect, cultivation of investment banking talent, improvement of internal control and incentive mechanism, to help COAMC promote transformation and enhance competitiveness.