Research On The Risk Management Of Financing Foreign Capital Used By Enterprises

Since the reform and opening up, foreign capital is coming faster. After joining the WTO, China permitted more and more industries invested by foreign capital. There is no doubt that foreign capital help Chinese boom the economy. However, accompanying the deepening of investment, many enterprises that were invested are in big trouble now. The purpose of absorbing the capital is to use money, learn advanced technologies and methods of modern administration. But companies invested do not achieve the goal, on the contrary, many companies have lost their brand, the abilities of self-development and the marketing channel, even some of them have lost the control of companies. Many big enterprises have been controlled by foreign capital. National industries of our country is in danger when they facing the challenge of foreign capital. Lack of the acknowledgement of risk is one important reason of this condition occurred nowadays.This paper describes the foreign capital financing issue in the view of risk management. We hope we can find the ways to control the risk that is incurred by financing. The mainstream is the process of financing, firstly we analyze the possibilities of financing, suggesting that enterprises consider the capital structure, choose the ways and channels of financing carefully. After that, we also need to notice the stock right structure, keeping control on companies. We should focus on the risk management after being invested. This paper includes some advices for risk-managing as well.Many domestic scholars are focusing on the issues of foreign investing. But these researches mainly pay much attention to the national security of economy. We try to make it in the view of risk management. We hope that more and more scholars will keep eyes on this topic after this paper. We also hope national enterprises would pay more attention to risk management to enhance the abilities of competition.