Research On Development Strategy Of S Asset Management Company

After the outbreak of the Asian financial crisis,a large number of state-owned enterprises in China stepped into difficult situations,and non-performing assets of state-owned commercial banks increased dramatically.To help state-owned commercial banks reduce the risks caused by the blowout of bad assets,four Asset Management Corporations,or AMC for short,came into being.However,with economic structural adjustment speeding up.The establishment of the four largest AMC has made great contributions to the four major state-owned banks to divest bad assets and reduce the rate of non-performing assets.With China has entered the crucial period of economic structure optimization,growth drivers replacement,and as a result,financial risks are accumulating within financial institutions represented by banks and trusts,leading to a further aggravation of the risks of financial non-performing assets.Under this circumstance,Chinese government has been loosening up the restrictions of setting up AMC,leading to fast growth of local AMC and private AMC.S province,as a large economic province,has been seeing both financial institutions and non-finance enterprises under its jurisdiction experiencing increasing financial defaults,loan overdue,loan suspensions,operating difficulties,or even bankruptcy.Given situation,the provincial government led the establishment of the province's first local asset management company,S Asset Management Company(abbreviated as SAMC).Starting from the point view of SAMC,this paper firstly introduces the company's business development history and current business development model.Then using PEST analysis method to analyze in politics,economics,society and technology of the macro-environment of the company and using Porter's five-force analysis model to analyze the environment and other external environment,this paper points out that the company has both opportunities and challenges.On the one hand,high growth of non-performing assets provides the company with a good opportunity;on the other hand,market competition intensified as loose restrictions encouraged more local AMC entering the market.Then the paper analyzes the internal environment from the perspective of resources and capacity.Lastly,the paper uses SWOT analysis method to analyze the selectable strategy combination,and point out the best development strategy for the company considering key factors of strategy selection and the company's development goals.Under the background of increasing market resources and increasing competition of non-performing assets,research on local AMC is rare.This paper untangles the industry development trend,analyzes the advantages of AMC as well as disadvantages,and suggests that SAMC should adopt SO strategy.At the same time,the company should take the necessary strategic measures to realize the company's mission,to solve financial risks,provide differentiated asset management services for customers,create sustainable capital returns for shareholders,and build a common development platform for employees,and ensure the company's future development and fierce market competition.Using its own advantages to seize the market opportunities,focus on the non-performing assets market,diversify its business development strategy,and supplement necessary strategic measures to make sure the company will achieve bigger and stronger goals in the future development and fierce competition in the market.