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Since been established, COAMC has faithfully fulfilled the special missions: dissolution of the financial risks, supporting the reform of state-owned enterprises, maximum preserving the state-owned assets and reducing losses. COAMC has actively explored the financial services with market demands, cultivated and trained a high-quality staff team, to build a solid foundation for the commercial transformation.
Dissolution of Financial Risks
By the end of June 2007, COAMC had acquired 663.9 billion of NPLs. The effective work has made related national commercial banks’ bad loan ratio dropped significantly and supported the national commercial banks’ restructuring. By entrusting risky financial institutions, COAMC has controlled the operating risks of Minfa Securities Co. Ltd, Qingtai Trust Investment Co. Ltd and Pan Asia Trust Co. Ltd. COAMC makes great contributions to dissolve national systemic financial risk and individual financial risk.
Maximum Preservation of the State-owned Asset and Loss Reduction
Both speed and efficiency are enhanced in our NPLs disposal, so we have tried every means to maximize the recovery and minimize the disposal cost. We have over-fulfilled the cash recovery task set by the government in advance and effectively controlled the costs. By the end of June 2006, COAMC has completed the “aggregate cash recovery ratio” and “cost ratio” target assessment tasks set by the government in advance.
Promotion of State-owned Enterprises’ Reform
By the end of June 2007, COAMC had conducted 167 debt-to-equity swap projects with a total amount of 30 billion yuan. Through debt-to-equity swap, the average debt-to-asset ratio of projects dropped by 20-30 percent, helping their financial burden significantly decreased. COAMC earnestly fulfills its responsibility as shareholder and has dispatched more than 500 personnel as directors, supervisors, and CFOs to the debt-to-equity enterprises. Most of them have reformed their corporate-systems and more than 2/3 have made up the deficits and gotten surpluses. By shareholding restructuring process, COAMC has promoted a number of state-owned enterprises to establish the modern enterprise system.
Serving For Society
COAMC always attaches importance to maintaining the social stability and constructing a harmonious society. We have assisted debt enterprises to help hundred thousands of workers settle down, which contributed to the alleviation of social conflicts, and we also paid some reform costs for the country. Through legal prosecution and debt recourse, we resolutely beat the behaviors of evading debts’ payment, to help keep the social credit order.
Exploring the way of transformation
COAMC has actively carried out the commercial purchase. In 2004 and 2005, COAMC has successfully purchased the doubtful loans of 128.9 billion yuan and 121.2 billion yuan from CCB and ICBC respectively. We explore diversified ways of asset disposition and improve the level of asset disposition. In order to promote the asset value and develop the market, we have combined the means of investment, investment banking and asset disposition, and introduced modern financial experience. The rate of cash recovery is increased significantly through debt restructuring, capital operation and series of resource integration. The layering structure trustees of four cities are successfully on the market. The asset backed securities named “Dongyuan No. 1” successfully issued. The speedy evaluation model is initially formed, which is used for NPLs purchased in wide range.
External Cooperation
COAMC has established strategic cooperative partnership with BOC, Jiangsu Bank etc., and also developed cooperation with world-renowned financial enterprises in various aspects.
Personnel Training
Among the 1,600 employees in COAMC, 89.31% have junior college education or higher, 191 have Master degree, 765 have bachelor degree, 626 have gotten Certified Public Accountant (CPA), Certified Public Valuer (CPV), Legal Professional qualification, Securities employment qualification or other professional qualifications, and 30 have qualified executives for securities companies. Through implementing human resources development strategy, COAMC has built a well-structured group with broad knowledge, deep profession, abundant experiences and high efficiency.
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