Reform of CMBC Business Department Drove Financial Market Business Boom

2007-10-19

We will, in accordance with the business planning and targets of the business department reform, implement risk management policies more effectively and further improve the risk management level. Currently, the risk management framework consisting of the macro decision-making level, risk management level and implementation level has been basically completed. Different risk management levels maintain independent mutually; meanwhile, cooperate with each other closely, which together constitute an organic integration of CMBC, and enhance the market risk measurement, monitoring and management capability. First, the head office dispatched a Chief Risk Officer to the Financial Market Dept., taking charge of the comprehensive risk management of the Department, including the formulation and implementation of risk policies, special risk analysis and appraisal and management report. The original risk management center will adjust its original work model of risk control, converting from the past business- oriented risk control to an independent supervisor, and comprehensively supporting investment, trading, and asset management businesses from the risk perspective and promoting the integration of management and control, including decision- making support, policy support, pricing support, system support, model support, process support, and risk support. The adjustment of above functions is to achieve the target of the business department of financial innovation oriented and risk control first, and safeguard the business department reform and its sound development. Besides, it will also speed up the construction of market risk measurement measures and measurement models.
Question: what is the strategic plan of CMBC for the future development of financial market business?
Yan Junwei: Business Department reform is a good opportunity for CMBC to take off, also a stage for our Financial Market Dept. to continue our resplendence. In the next three years, the Financial Market Dept. will sure spur with long accumulation and try to rank top in the financial reform.
In the coming years, we will further advance the intensive organizational structure, continuously strengthen institutional innovation and business innovation, comprehensively realize the professional management of business, intensive management, and construct a professional star team to maximize the Bank’s interests and achieve the strategic target of sustained development.
In terms of continuing the business innovation, the financial market business as the profit creation center of CMBC will primarily take the following measures to improve the investment returns: first, promote the development of direct financing market, largen and strengthen the underwriting business, and try hard to boost the income of intermediary business; second, aim at the changes of market, offering structure and supply structure to adjust the investment strategies for the primary markets, explore new investment channels and investment products, and adopt feasible measures to actively prevent market risk, credit risk and operation risk under the market environment with volatile exchange rate and interest rates. Finally, promote the innovation in financial market business. Offer various new derivatives to satisfy the requirements of the public, and use new products to advance the strategic transformation and business development of the Bank.

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