Risk Mitigation Through Collaboration
In 2023, the company diligently implemented the national policy requirements regarding the prevention and mitigation of major financial risks. Leveraging its integrated operational advantages, the company made significant strides in promoting collaborative risk resolution, yielding tangible results.
The company adopted an innovative and collaborative risk resolution model with CITIC’s unique characteristics. Capitalising on its advantages of extensive industry coverage and comprehensive financial licences, the company established a collaborative risk resolution “joint fleet”, engaging in countercyclical operations. Through synergies between its industrial and financial sectors, as well as within the financial sector itself, the company broadened its operational scope for non-performing assets, extended the value creation chain, and facilitated the preservation, appreciation, and realisation of distressed assets. In terms of industry-finance collaboration, the company’s industrial subsidiaries utilised market-oriented approaches to acquire and restructure problem assets from its financial subsidiaries. This approach not only facilitated the efficient disposal of financial risks but also enhanced the company’s industrial structure and competitiveness. Leveraging its strengths in real estate development and operation, the company employed various models such as entrusted management and construction to revitalise real estate risk projects of financial subsidiaries, thereby providing professional support and driving its own transformational development. In terms of finance-finance collaboration, the company capitalised on CITIC Financial AMC and CITIC Trust’s expertise in countercyclical operations and asset isolation respectively. The company harnessed its collective resources and professional advantages to create a joint effort for addressing and resolving risks. To effectively mitigate existing risks, it implemented various measures, including injecting additional capital, strengthening safeguard measures, and implementing risk isolation strategies. The collaborative model for resolving risks, characterised by its unique CITIC attributes, has developed over time, facilitating a transition from risk asset disposition to risk asset management and operation.
The company has been enhancing the mechanism for synergistic risk management. It upholds the principles of legal compliance, substantive risk mitigation, and maximising group interests. The company strengthened the coordinated efforts of the entire group, continuously improving supporting mechanisms, standardising workflow, and harnessing the potential of collaborative risk mitigation. Guided by the principle of “One CITIC, One Customer”, the company fostered a culture of resource sharing, information sharing, and experience sharing to harness collective strength. By capitalising on the benefits of strategic decision-making, the company actively sought policy support from local governments.
The company adopted an innovative and collaborative risk resolution model with CITIC’s unique characteristics. Capitalising on its advantages of extensive industry coverage and comprehensive financial licences, the company established a collaborative risk resolution “joint fleet”, engaging in countercyclical operations. Through synergies between its industrial and financial sectors, as well as within the financial sector itself, the company broadened its operational scope for non-performing assets, extended the value creation chain, and facilitated the preservation, appreciation, and realisation of distressed assets. In terms of industry-finance collaboration, the company’s industrial subsidiaries utilised market-oriented approaches to acquire and restructure problem assets from its financial subsidiaries. This approach not only facilitated the efficient disposal of financial risks but also enhanced the company’s industrial structure and competitiveness. Leveraging its strengths in real estate development and operation, the company employed various models such as entrusted management and construction to revitalise real estate risk projects of financial subsidiaries, thereby providing professional support and driving its own transformational development. In terms of finance-finance collaboration, the company capitalised on CITIC Financial AMC and CITIC Trust’s expertise in countercyclical operations and asset isolation respectively. The company harnessed its collective resources and professional advantages to create a joint effort for addressing and resolving risks. To effectively mitigate existing risks, it implemented various measures, including injecting additional capital, strengthening safeguard measures, and implementing risk isolation strategies. The collaborative model for resolving risks, characterised by its unique CITIC attributes, has developed over time, facilitating a transition from risk asset disposition to risk asset management and operation.
The company has been enhancing the mechanism for synergistic risk management. It upholds the principles of legal compliance, substantive risk mitigation, and maximising group interests. The company strengthened the coordinated efforts of the entire group, continuously improving supporting mechanisms, standardising workflow, and harnessing the potential of collaborative risk mitigation. Guided by the principle of “One CITIC, One Customer”, the company fostered a culture of resource sharing, information sharing, and experience sharing to harness collective strength. By capitalising on the benefits of strategic decision-making, the company actively sought policy support from local governments.
With a focus on achieving economic and social benefits, the company successfully mitigated risks in a diverse portfolio of major projects, amounting to RMB30 billion, through collaborative risk management, effectively reducing the non-performing loan levels of financial subsidiaries and expediting the revitalisation of distressed assets. Moreover, more than 20 real estate relief projects were implemented, resulting in the delivery of over 50,000 housing units and facilitating the restart of key projects in cities such as Shenzhen, Shanghai, and Nanning. These endeavors not only generated profits for the company but also supported local governments in ensuring the timely completion of housing projects, safeguarding livelihoods, and maintaining stability. CITIC made valuable contributions to the prevention and resolution of systemic financial risks through its intelligence and robust capabilities.
