A Study On The Financial Performance,Policy And Strategy Of China Huarong And China Cinda

After completing the historical mission of disposing policy bad loans,China Huarong,Cinda,Great Wall and Dongfang Financial Asset Management Co.,Ltd.have undergone commercial transformation,and have developed into comprehensive financial institution,which is operating bad assert management as mian business,with bank,insurance,securities,trust,leasing and other financial licenses.In recent years,due to the downward trend of China's macro-economy,and the financial industry is becoming more competitive,the size and ratio of bad assets of financial institutions have shown an upward trend,which gives big developing opportunities for the four major state-owned Financial Asset Management Co.,Ltd.and makes them grow rapidly.Among them,China Cinda and China Huarong are in the leading position in the industry,and they landed in the Hong Kong capital market in 2013 and 2015 respectively and they achieved remarkable performance.This paper takes China Huarong and China Cinda two companies as the research object,through the analysis of the financial performance of the two companies,understand the company's financial policy,coupled with financial strategy matrix graph analysis method,put forward Suggestions on the development of two financial assets management companies.Through analysis,2013-2017 is high-speed expansion period of the two companies development,but their debt level is rising year by year,and they developed radically,the main business indicators present the downward trend growth,the model relying on funds to drive the development is unsustainable.According to the comparison between the two companies,China Cinda was the industry leader before 2015,but the main operating indicators of China huarong after 2015 comprehensively surpassed China Cinda.According to the analysis,China Huarong's profitability,risk management capability and growth capability are better than China cinda's,but its leverage ratio is too high,and its asset operation efficiency,asset quality and capital strength need to be improved.China Cinda has strong asset quality,operational capability and debt management capability,but its profitability and popularity need to be improved.Therefore,the author suggests that,in terms of business operation,the two companies should change their development model from business scale expansion to optimize business structure,improve quality and efficiency,and improve development quality;further excavate internal potential,good internal work,make full use of the bad assets management business advantages,strengthen the ability of the group internal business cooperation,make the financial service differentiation,and convert licence resources into business performance;establish and improve the system risk prevention mechanism to improve the group's system risk management level.Strengthen the management of the project assets,identify and deal with risks in time,consolidate the asset quality.In terms of financial policies,the two companies reasonably control the level of debt and prevent financial risks.We will improve and innovate ways to capital supplement instruments and strengthen equity capital financing.Optimize dividend distribution and dividend policy;optimize the asset structure,revitalize the assets,effectively slim down,improve the efficiency of asset operation.We will strengthen capital planning and management,strengthen capital constraints,avoid blind expansion and pursuit of scale,and reduce capital consumption.