An Financial Analysis Of Chinese Enterprises' Oversea Investment Projects

For Chinese enterprises, 21st century, a promising era full of opportunities, might be as well a times in which the Chinese enterprises will experience competitions and rigorous challenges. With the entry to WTO in 2001, China has started further opening to the word in all the directions and at multi-levels to push the its economy onto the tracks of global economy. As a result, we will witness domestic and foreign market being combined into a common market. Economic links between China and foreign countries will be transformed into profound international investments and production elements internationally floating and allocating from simple international trade. To follow the trend of economy globalization, "going-out" strategy with encouraging foreign direct investment as core, has been put on the agendas of decision makers in the governments and enterprises.With out doubt, our enterprises are lack of both practical experience and relevant knowledge of foreign direct investment, due to these enterprises long existing under the policy of planned economy and close-door to outside. Therefore, in the environment of economy globalization, applying a set of systematic and scientific financial analysis measures to analyze and evaluate foreign direct investment projects, has great significance for speeding up the rationalization and standardization of the investment decision-making, quickening the progress of market-oriented investment management, optimizing source allocation, minimizing the risks, and expanding benefits etc.After knowing the current stage of economic development as well as implementation of the government's "go out" strategy, borrowing and learning from the advanced theory of the overseas investment financial analysis and evaluation both at home and abroad, combining the practical experience of a number of enterprises in China's overseas investment, this paper sums up a guiding financial analysis method of overseas investment, that is, overseas investment projects adjusted present value approach.