The Discussion On The Management Of The Fund Of Enterprise Group In Our Country

With the development of economic system reform. Chinese Corporation Groups are burgeoning and prospering. They are continually getting stronger and coming into being multi-construction economic units, which are mainly composed of sizable parent corporations and subsidiary corporations with united rights, products, techniques, economy and contracts system.Corporation Groups are mostly in workshops' management modes under planned economy system, which focus on products and resources. While under market economy system, Corporation Groups put forward a brand-new managerial notion by making financial management and fund management as the center of business management and financial management respectively, which changes the old business management concept. Thus, business management in most sole corporations has been upgraded. Nevertheless, how to apply the significance of fund management in financial management and business management 'is worth exploring and also the objective of this article.It concludes in this article that the strategic target of fund management is to keep an equilibrium and effective fund flow. Equilibrium refers to the balance of fund inflows and outflows during their operations, while effectiveness refers to the fund increment. The former supports the latter and the latter enhances the former. Their interdependence insures the profitability of groups. A series of measures will possibly meet the strategic target by fund centralization, coordination, innovation and profit increment. With these efforts, subsidiary corporations could keep a consistent strategy with their parent corporations, which will lead to an efficient and effective fund flow and a perpetual profitability.This article describes the fund management pattern of Wuhan Iron and Steel Group(WISG) and draws some conclusions, which solves the perplexity during the change from workshops to modern business corporations, clarifies the termsrequisite for a centralized fund management, creates a "six-factors combination" fund management pattern.The combination of parent corporations' centralized fund management and subsidiary corporations' assistance management basically settles the weaknesses of traditional fund management. It better suits the normal fund operation requirements of parent corporations under sole corporation management, which not only keeps most of the fund in perfect control, but also gives appropriate self-management rights to subsidiary corporations. Effective fund equilibrium combining with optimal capital structure best reflects the advantages of total budgeting management that adjusts capital structure fairly and lower fund cost in business development. Fund target control combines with process management, which aims at solving the difficulties and weaknesses of fund management. It demands effective measures and total process management to reach the target. The subsidiary corporations' fund settlement combines with financial functions of WISG Finance Corporation, which not only fully utilizes its financial functions, such as fund exchange, coordination and supervision. The combination between effective utilization of foreign currency and exchange risk control facilitates future development of parent corporations. Combining Fund information management with business process makes it possible for resources flow to keep pace with fund flow and information flow, and provides an important means and strong supports for business decision-making. It serves as a tool for improving fund management as well. x"Six-factors combination" holds the essence of centralized fund management, satisfactorily settles the contradictions during business development and suitably constructs a characterized fund management pattern of WISG.