Q: 2018 witnesses the 40th anniversary of the Reform and Opening-up. Could you introduce under what circumstances China Orient Asset Management Co.，Ltd. (hereinafter referred to as China Orient) was established and what role did it play in the development of the national economy?
Wu Yue: It is a great honor to participate in the large-scale series of interviews of Xinhua Net on the '40th Anniversary of Reform and Opening-up.' China Orient was established in a time of financial crisis. It came into being under the wise decision and strong leadership of the CPC Central Committee and the State Council.
From 1997 to 1999, the Asian financial crisis exerted a significant impact on China's economy. As a responsible country, China, on the one hand, has always promised and insisted on the non-devaluation of RMB during the Asian financial crisis, acting as an important stabilizing force in the crisis; On the other hand, it effectively introduced response measures such as proactive fiscal policies, which safeguarded China from the impact of the crisis. Nonetheless, the financial crisis in neighboring countries posed profound lessons and warnings for us. The root of the crisis in these countries lies in a high Banking NPLR (non-performing loan ratio). Their financial system was very fragile, and their macro and micro-economies were also vulnerable. External impacts may easily lead to the collapse of their internal financial systems and turmoil of the entire economic system under the background of economic and financial globalization.
At the outbreak of the Asian financial crisis, China's banking system was exposed to extremely prominent NPA (non-performing asset) problems, the NPLR of state-owned banks stayed at high level, and the entire financial system was relatively fragile. In the 1990s, during China's transition to a socialist market economy, a considerable number of state-owned enterprises failed to adapt to the requirements of economic system reform. With poor operating results, they could not repay bank loans. At that time, the state-owned commercial banks and enterprises had not yet become independent market entities. State-owned banks were forced to continuously lend to these state-owned enterprises, leading more and more NPL (non-performing loan). According to statistics, the NPL in China's banking system took about 25% of total loans at the outbreak of the Asian financial crisis, and the estimated figure might be larger for some international investment banks.
Under the specific conditions of the Asian financial crisis abroad and the high NPL of commercial banks at home, the CPC Central Committee and the State Council decided to draw on the internationally popular 'surgical therapy,' namely, divest the NPA to 'bad banks' through the 'good bank - bad bank' model to enable the banks in crisis to get rid of trouble quickly and become 'good banks.' Therefore, four state-owned financial asset management companies were established to act as policy agencies responsible for the acquisition, management and disposal of the NPAs of the four state-owned commercial banks, including ICBC, ABC, BOC and CCB, taking over their NPL one off at an book price of about 1.4 trillion yuan, thus quickly resolving financial risks and maintaining the health and stability of the financial system. In October 1999, China Orient was established with the approval of the State Council to deal with the acquisition, management and disposal of NPA of BOC.
As a special counter-cyclical management tool and financial aid agency, financial asset management companies were initially endowed by our country with core functions to prevent and resolve financial risks, acting as a 'stabilizer' of the economic and financial system, a 'firewall' against financial risks, and a 'fire brigade' against the financial crisis. After nearly two decades of development, as one of the four major state-owned financial asset management companies, China Orient started from the disposal of policy NPA and has become a comprehensive financial service group with a certain market position through commercial transformation, restructuring and introducing strategic investment.
Q: Through Chairman Wu's introduction, we learned that China Orient had undertaken the historical mission of 'preserving state-owned assets, resolving financial risks, and promoting the reform of state-owned enterprises' since its establishment. So, what contribution has China Orient made to the development of the national economy in the past 20 years since its establishment?
Wu Yue: 19 years ago, more than 1,000 BOC employees gathered under China Orient in response to the national call and compliance with the organizational arrangements. At that time, facing various difficulties such as unsound system, immature market, complicated credit and debt relationship, lack of loan information, no successful experience to learn from and the like, China Orient has racked its brains to preserve state-owned assets, and cut the loss by all manner of means, made continuous efforts to explore effective methods of disposal, attempted to increase the efforts to disposal, and exerted all its' strength to push forward the disposal process. Gradually, China Orient explored a set of scientific and effective due diligence techniques and methods, established a set of asset pricing models that meet national conditions and actual conditions, and trained a team of professional talents to manage and dispose of NPA. Therefore, China Orient has successfully completed the three historical missions of 'preserving state-owned assets, resolving financial risks, and promoting the reform of state-owned enterprises' entrusted by the Party and the state, and established a professional brand of China Orient.
China Orient undertook a large amount of NPA divested from BOC in two batches since its establishment, including policy NPA of 277.313 billion yuan and loss NPA of 142.452 billion yuan; In 2004, it purchased 128.9 billion yuan of doubtful loans of CCB from China Cinda; In 2005, it successfully won 10 asset packages with a bid amount of 121.2 billion yuan at the doubtful loan bidding fair of ICBC; Afterwards, it acquired a large number of NPA from banks such as ICBC, ABC, BOC, CCB, BOCOM, CIB, and CMBC in a commercialized manner. Up to now, China Orient has accumulated more than one trillion yuan of NPA purchased from the banking industry.
China Orient has achieved fruitful achievement in preserving state-owned assets. In 2004, the Ministry of Finance required all asset management companies to fully complete the disposal of policy creditor’s rights assets divestiture in 2006 and set a recovery rate contract target. After unremitting efforts, China Orient successfully completed the target task issued by the Ministry of Finance by the end of 2006, with a total cash recovery of 32.7 billion yuan, and the overall cash recovery rate of creditor’s rights assets reached 13.87%, 1.6% higher than the appraisal target of the Ministry of Finance. As of now, the cumulative recovery rate of the above NPA has reached about 20%. In addition, China Orient applied debt-for-equity swap to state-owned enterprises and was entrusted to dispose of more than 140 billion yuan of loss loans of BOC, the recovery rate of which completed the appraisal task and effectively preserved state-owned assets. It is worth mentioning that the net assets of China Orient had reached 117.054 billion yuan by the end of 2017 from the capital of 10 billion yuan injected by the Ministry of Finance when it was established, an increase of more than 10 times in 18 years, realizing the preservation and appreciation of state-owned assets.
China Orient made outstanding achievements in resolving financial risks. China Orient's acquisition and disposal work of NPA has significantly relieved the burden of BOC, CCB and ICBC, and successfully realized the listing of the company, which has dramatically improved the ranking of the three banks in the international banking industry. Moreover, ICBC has hailed as 'the world's largest bank.' In 2008, the financial crisis raged the world again, much more severe than the Asian financial crisis in 1997, but China's financial industry was 'good than others'. It can be said that asset management companies made their efforts and contributions to the 'medals' of the stable operation of China's financial system. China Orient also successfully took part in the clearance and closedown of Hong Kong and Macau International (Group), and successfully participated in the risk relief of many financial institutions such as MF Securities, Qingtai Trust, Fanya Trust, China Financial Leasing Group Limited, Guangdong Science & Technology Research & Development Platform, China Insurance, Bank of Dalian and so on, which eliminated important risk points from the economic and financial system in a timely manner, and effectively curbed risk spread and deterioration, making contributions to the resolution of systemic financial risks.
China Orient achieved notable results in promoting the reform of state-owned enterprises. In addition to the divestiture of policy NPA by the BOC, China Orient undertook another important task, to carry out debt-for-equity swaps for more than 200 state-owned enterprises. Debt-for-equity swaps helped some companies get rid of the heavy financial burden, realize internal reorganization and optimum distribution of resources, strengthen enterprises’ vitality and market competitiveness, and improve their profitability. At the same time, it put forward the reform and development of large and medium-sized state-owned enterprises, promoted them to change their single shareholding structure, transformed the operating mechanism of enterprises, established a modern enterprise system, and brought a new look to the reform and development of enterprises. Most companies turned losses into profits after introducing the debt-for-equity swaps, and some of them also were provided with the conditions for listing. Shandong Ruyi, Aluminum Corporation of China, Zhuzhou Smelter Group and many other debt-for-equity swap companies realized A-share or H-share listed. China Orient also promoted the structural adjustment of the state-owned economy and industrial layout by taking measures such as mergers and acquisitions and restructuring on debt-for-equity swap enterprises, improving the quality and efficiency of the growth of the state-owned economy.
China Orient actively explored the path of commercial transformation and sought sustainable development while fulfilling the historical mission entrusted by the state, and it has achieved considerable development and grown into a comprehensive financial service group with strong strength and high industry status after years of unremitting efforts. Up to now, its total assets have exceeded one trillion, with 25 branches and one business department have been set up in the central city of China, as well as 14 holding companies home and abroad, such as China Insurance, Bank of Dalian, and Dongxing Securities and others, mainly engaged in NPA and insurance, banks, securities, trusts, inclusive finance, credit ratings, international business and the like. Home to more than 60,000 employees, China Orient have set up many institutions across the country. In the long-term operation process, the company have cultivated the parent company's capacities of unique NPA operation and management, special opportunity investment and problem organizations’ restructuring and disposal, developed a fully licensed institutional network and business resource advantages for financial subsidiaries, and established a flexible management system and operating mechanism for non-financial subsidiaries, and accumulated a number of customer groups with assets not less than ten million. Next, China Orient will hold high the banner of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, earnestly implement the spirit of the 19th CPC National Congress, the Central Economic Working Conference, the National Financial Work Conference, and the video-phone conference on bank insurance supervision work, and earnestly implement the overall principle of making steady progress and comprehensively strengthen Party building. It will practice the new development concept, aim to achieve high-quality development, adhere to the bottom line of lawful and compliant operation, insist on returning to the source, specialize in main business, and effectively serve the development of the real economy. China Orient will make great efforts to build a modern financial service enterprise that meets the development requirements of socialism with Chinese characteristics in the new era with standardized governance, strong control, professional services, advanced culture, and first-class performance.
Q: The report of the 19th CPC National Congress indicated that the structural reform on the supply side should be deepened to promote the construction of a modern economic system on the mainline. How does China Orient implement the new development concept, support deepening the structural reform on the supply side, and improve the quality and efficiency of serving the real economy under new situation?
Wu Yue: The successful convening of the 19th CPC National Congress has drawn a new and grand blueprint for the development of undertakings of the Party and the state, marking the starting of construction of a great modern socialist country. CPC China Orient Committee will insist on the study and implementation of the spirit of the 19th CPC National Congress as the primary political task for the current and future period, follow Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, remain true to our original aspiration and keep our mission firmly in mind, understand the position and function of financial asset management companies in the national financial system from a political perspective, consciously obey and serve national strategies, and closely follow the five tasks of 'capacity reduction, de-stocking, deleveraging, cost reduction, and improving underdeveloped areas' by virtue of unique advantages of connecting finance and the real economy to actively support and participate in structural reform on the supply side, further improve the quality and efficiency of serving the real economy by revitalizing stocks, and strive to making contributions to the promotion of national economic structural adjustment, industrial upgrading and strategic transformation.
First, we strongly support capacity reduction. Actively give play to the advantages of traditional NPA business to help physical enterprises revitalize their existing stock assets. Carry out substantive restructuring business for problematic enterprises and projects that temporarily encounter difficulties but can still restore their market competitiveness after deepening reforms and strengthening internal management, and reallocate the funds, assets, talents, technology, management and other factors of the problematic enterprises, dissolve stock risks and realize corporate value reconstruction and improvement. Help enterprises resolve and dispose stock risks by means of debt restructuring and strengthening management etc., promote the healthy development of physical enterprises, and help transform and upgrade the economic structure. Timely dispose the ‘zombie enterprises’ through package sales, auctions, sell-off, bankruptcy liquidation, mergers and acquisitions, to accelerate market liquidation and vigorously prevent and resolve financial risks.
Second, we strongly support de-stocking. Strictly implement the relevant policies on real estate regulation and control. The approval of real estate project financing was stopped from July 2017, and illegal inflow of funds into the real estate market was strictly prohibited. At the same time, closely follow up the reform of the national housing system, support the rebuilding of houses in all the run-down areas, and give full play to the role of industry-leading companies for projects that may get stuck in unfinished building dilemma or may cause social risks to carry out substantive reorganization, reconstruct the production factors of difficult projects, and support the resolution of social conflicts and financial risks. Deeply probe into the business cooperation models with local governments, solve issues of replacing old growth drivers with new ones, resolving local financial risks, and other issues in local state-owned enterprises mixed-ownership reform through fund models.
Third, we strongly support deleveraging. Actively respond to the call of the central government and regulatory authorities, seek the market-oriented legalized debt-for-equity swap business opportunities from more than one perspective, actively explore business models, integrate superior resources, increase investment, and effectively promote market-oriented debt-for-equity swap and other tasks. China Orient has participated in market-oriented debt-for-equity swap projects since the last year such as China Shipbuilding Industry Company Limited, China State Shipbuilding Corporation Limited, and China Railway Group Limited. At the same time, it has actively docked with market-oriented debt-for-equity swap projects of multiple state-owned enterprises and fully supported the deleveraging of physical enterprises. Up to the end of June this year, China Orient's market-oriented debt-for-equity swap projects had reached a total of 4.4 billion yuan.
Fourth, we strongly support to cost reduction. Give full play to the advantages of the integrated financial service group, actively promote the synergy of businesses and resources between the group and its subsidiaries, and between subsidiaries and subsidiaries, and tailor a diversified and personalized financial service solution for a number of physical enterprises, reducing fees for intermediate links in customer financing. For example, Dongxing Securities, Bank of Dalian and China Insurance under China Orient have taken advantages of their business synergy, strengthened online and offline business cooperation, and created an 'investment & financing & investment bank' service model, which has been recognized by customers.
Fifth, we strongly support to improve underdeveloped areas. Vigorously develop inclusive financial services such as small and microfinance, strengthen and optimize agricultural insurance, and promote the innovative development of green finance. China Insurance, a subsidiary under China Orient, is the longest-term insurance company operating agricultural insurance in China. Its primary service network covers counties and townships across China, with 66,000 village-level service sites, breaking through the last mile to serve farmer households and providing a powerful risk guarantee for agricultural development and targeted poverty alleviation. 'Shuidaitong' and supply chain financial products developed by the Bank of Dalian strive to solve the difficult and expensive financing problems of small and micro enterprises; Dongxing Securities has allocated important strategic resources in serving the development of small and medium-sized enterprises, taking a leading edge in the industry in terms of the NEEQ (National Equities Exchange and Quotations) business, collective debt and market value studies of collection of small and medium-sized enterprises. The agricultural loan business model of Orient Finance helps farmers get out of difficulties and realize their dreams. Golden Credit Rating actively upholds social responsibility to intensify research on the impact of environmental factors in the field of credit rating, improve the green credit rating and green certification assessment framework, and fully push forward the development of green finance.
Q: The Central Economic Working Conference held on December 20 last year emphasized that: 'In the next three years, we must focus on the prevention and resolution of major risks, targeted poverty alleviation, and pollution prevention and control to secure a decisive victory in building a moderately prosperous society in all respects.' As the national economic counter-cyclical management tools, how does China Orient develop NPA business and what role will it play in preventing and resolving financial risks?
Wu Yue: The prevention and resolution of financial risks is related to whether China can shift from a stage of rapid growth to a stage of high-quality development, whether it can achieve the goal of building a moderately prosperous society in all respects and start a new journey to build a modern socialist country in an all-round way. As General Secretary Xi Jinping said, the prevention and resolution of financial risks concerned the national security, the overall situation of development, and the safety of people's property, and it was a major crossing point that must be crossed to achieve high-quality development. China Orient, as a 'stabilizer' of the economic and financial system, a 'firewall' of financial risks, and a 'fire brigade' of financial crises, started up its business by relying on the disposal of NPA. China Orient has great advantages in this regard and can and should make a positive contribution to the battle against preventing and resolving the financial risks. In recent years, China Orient has firmly established the 'four consciousness,' consciously obeyed and served the national strategy, adhered to 'relative concentration, highlighting the main business and specializing in major business,' made continuous efforts to deepen the reform of the main business of NPA in the new era, and timely adjust the company's development strategy, earnestly returned to the main business of NPA, continued to increase the investment of non-performing assets business, and strived to make a positive contribution to the battle against preventing and resolving financial risks.
First, we adjusted and optimized the system and mechanism to promote the transformation and development of the main business of NPA. Since 2016, China Orient has gradually implemented the comprehensive authorization policy for financial NPA business, dynamically managed and real-time adjusting the authorization system according to the business development of each unit and the actual needs, which has greatly improved the initiative of all business units to specialize in NPA on the premise of strengthening risk prevention and control. At the same time, the business system was revised, the internal approval process was simplified, and the efficiency of business development was improved in order to adapt to the characteristics of the NPA business in the new period. In addition, the profit assessment policy for financial NPA business was adjusted and released in a targeted manner, and the assessment mechanism was tilted and supported from various aspects such as interest-bearing policies and deadline requirements to ensure the sustainability of the development of the main business of NPA. We have formulated and issued work guidelines and rules related to NPA business to promote the active development of NPA business based on the latest changes in the market situation in combination with the regional market characteristics of each business unit and its own business reality.
Second, we assigned special investment tasks and increased the investment in the main business of NPA. In 2017, China Orient issued a special investment amount of 25 billion yuan in financial NPA main business and mission objectives and established NPA business supervision and leadership group to supervise and guide the major businesses of all business units. In the end, the 16 business units released a total of 38.413 billion yuan in financial NPA business with the joint efforts of the group, completely exceeding the 2017 special quota task ahead of schedule. In 2018, China Orient proposed to invest 100 billion yuan in the NPA market. In the first half of this year, the parent company added investment of 55.593 billion yuan in NPA business. By the end of June, the balance of NPA business increased by 48.1% from the end of 2017. In general, China Orient's main business of NPA has achieved sustained and steady growth in both stock and incremental scale.
Third, we promoted the innovative development of business models based on market characteristics in the new period. China Orient has always adhered to the 'customer-centric, demand-oriented, and risk control-based' concepts, and actively carried out research on innovative business models of NPA. At present, 13 financial non-performing and 12 non-financial non-performing business models have been refined. At the same time, we have made continuous efforts to explore new replicable models that are more suitable for the market, meet regulatory requirements, and have good returns. With a focus on financial non-performing and non-financial non-performing models, we also explored special investment opportunities in problematic projects restructuring, mergers and acquisitions and rescue of crisis enterprises in the structural reform on the supply side, and actively transformed and upgraded the disposal method of NPA from the traditional 'three prohibitions' model to 'three re-' (reorganization, reorientation, and reconstruction) model. With the combination of industry and finance as the starting point, we resorted to industrial investment banking methods to help enterprises obtain rebirth while achieving better economic and social benefits. In addition, we also actively participated in the secondary investment of banks' NPA securitization products. By the end of June 2018, we had invested in 6 bank NPA securitization secondary products, totaling an investment amount of 1.101 billion yuan, corresponding to the principal and interest amount of 33.043 billion yuan of NPL, supporting the bank's innovative disposal and resolution of NPA in a proper manner.
Fourth, we broadened cooperation channels and expanded the 'circle of friends' in NPA industry. In order to increase the breadth and depth of the development of NPA business, China Orient has continuously explored and opened up new channels for cooperation in NPA, trying to expand, consolidate, and deepen the 'circle of friends' to promote the sustainable and high-quality development of the main business of NPA. We actively strengthened the 'HQ-to-HQ' strategic cooperation with large and medium-sized financial institutions or the HQ of large enterprise groups, signed strategic cooperation agreements with major customers, and comprehensively deepened cooperation; Focusing on the main business of NPA, we also strengthened comprehensive strategic cooperation with local governments, in-depth exploration of business cooperation models with local governments, probed into debt risk resolution of local government platform, and business opportunities in the reform of mixed ownership of local state-owned enterprises to facilitate the transformation and upgrading of the real economy and prevent and resolve regional financial risks. We actively promoted the preparation and operation of local asset management companies. In 2017, we took the lead in organizing the establishment of Ningbo Financial Asset Management Co., Ltd. and invested in Suzhou Asset Management Co., Ltd., both of whom have achieved the goals of opening and profitability of the current year after establishment, playing a positive role in the resolution of regional financial risks. We invested in Tianjin Financial Asset Management Co., Ltd. in 2018. In addition, we have also signed strategic cooperation agreements with 49 local asset management companies across the country to give full play to China Orient's advantages in capital, talents, technology, experience, management and innovation, and effectively connect the advantages of local AMCs with 'favorable geographical position and harmonious relationship' to complement each other, push forward the cooperation in depth, strengthen, optimize and enlarge the main business of NPA.
Q: We know that in order to win the battle against prevent and resolve financial risks, the risk management and control of financial institutions themselves is also very important. So, what measures will China Orient take to cope with its own risk management?
Wu Yue: If you want to work with iron, you must be tough yourself. We must have excellent risk management and control skills to fully prevent and resolve financial risks. China Orient will earnestly implement the requirements for combating 'preventing and resolving major risks' of the central government, implement the main responsibility of financial institutions for risk prevention, strictly follow the requirements of the main regulatory authorities and the needs of modern corporate governance, continuously strengthen the construction of a comprehensive risk management system, improves the construction of risk management systems and mechanisms, and strive to build a professional and competent risk management team to provide solid support and guarantee for the company to achieve high-quality development goals.
First, we continuously improve the comprehensive risk management system of the group. After the completion of the restructuring in 2016, China Orient gradually established a complete corporate governance structure, and developed and implemented a series of risk management regulations for the group in accordance with the regulatory rules such as the Supervision Measures for Financial Asset Management Companies and the Guideline for Comprehensive Risk Management of Banking Financial Institutions, including comprehensive risk management methods, risk preference management methods, internal transactions and related party transaction management methods, laying a systemic foundation in risk management and control for the group. At the same time, we continued to promote the construction of information systems, improve the risk monitoring index system and early warning system, give full play to the role of customer rating and limit management tools, strictly implement internal transaction and related party transaction management, scientifically establish a dynamic authorization mechanism for business units, combine real-time warning of risks with writing monitoring reports regular, and organize risk stress tests on a regular basis. Through multi-angle and multi-level risk management and control methods, continued efforts are made to improve the overall risk management level and risk management and control capabilities of the group.
Second, we firmly establish a compliance-oriented business philosophy. China Orient has deeply understood that adherence to compliance management is the prerequisite for the healthy development of the company, so we will firmly establish a compliance-oriented business philosophy, correctly handle the dialectical relationship between compliance and development, benefits and risks, further improve and perfect the compliance risk management system, learn to understand the regulatory policies, intensify the accountability for violations, advocate and cultivate a culture of compliance, firmly establish a sense of risk for all employees, and ensure the company's stable operation. We seriously carry out the work of in-depth regulation of market chaos and promptly rectify and accurately eliminate hidden risks and problems. According to regulatory requirements, the chaotic market rectification work carried out by China Orient has achieved initial results. Meanwhile, China Orient actively and effectively carries out special activities to prevent diversified business management risks according to the deployment and arrangement of the regulatory authorities, grasps basic assets in accordance with the principle of penetration, and realizes full coverage of risk management in accordance with the principle of consolidation, effectively preventing cross-infection of risks within the group. China Orient also promotes the improvement of the corporate governance and internal control management of its subsidiaries by strengthening the group's management and control, which has promoted the improvement of the group's overall risk management and control capabilities.
Third, we strengthen the prevention of important types of risks. China Orient continues to strengthen credit risk management and control according to the changes in the economic and financial situation, perform unified management of customers’ concentration, major customers large projects’ risks monitoring and early warning and accurate classification of project risks through the advancement of internal customer ratings, and enhance the disposal strength of risk projects, fully withdraw assets impairment preparations and other measures, and implement all-round and full-process credit risk management. We continuously improve the market risks monitoring mechanism and minimize the impact of market volatility through measures such as exposure monitoring, position limits, mark-to-market systems, stop-loss control and others. We attach great importance to liquidity risk management and take precautions to prevent liquidity risks through measures such as broadening financing channels, optimizing the investment term structure, and increasing the coverage ratio. We effectively implement operational (case) risk management by improving internal control mechanisms, strengthening accountability and carrying out case prevention education, etc. After introducing a range of measures, China Orient has established a radar network that can effectively detect, identify, measure and monitor various major risks, and strive to ensure that the group will keep from major risks in major strategies, business directions, and key investment sectors.
Fourth, we strengthen risk management and control of the entire business process. In order to ensure the stable development of the core business of NPA, China Orient continues to improve the internal management and control processes, prudently evaluates pricing, actively participates in bidding, and innovates disposal methods and strives to achieve a win-win situation for both economic and social benefits based on new situations and features of the current NPA market, such as increased participants, fierce market competition, and increasingly diversified asset disposal methods. For instance, in the asset acquisition process, we will fully carry out the due diligence and in-depth analysis of the debtor's qualifications and asset status, determine the value range of assets based on the principle of prudence, and actively participate in the asset acquisition bidding on this basis, striving to collect more NPA; in the process of asset disposal, we will establish the 'NPA+' concept, innovate disposal methods, and exchange time for space to maximize the value of assets and realize the assets accretion to the maximum extent.
