Strategic Financing Management Of Group Enterprise: Case Study

Modern business environment has been undergoing major changes with the deepening reform in China's market economy and the acceleration of global economic integration. Within this context, it is imperative for a group enterprise to establish guiding principles to manage its financing behaviors. The proper establishment and implementation of these principles will greatly enhance the group's financing capacity and efficiency, enabling it to secure funding for sustainable growth.Under this principal idea, this article starts with highlighting the importance of implementing strategic financing management in group enterprises. Based on basic theories in financing, a case study is conducted in the ZH Group, a state-owned enterprise, with a prime focus on its strategic financing management. Through the discussions of the formation and development of ZH Group's financing strategies we come to conclusions with the important elements and necessary steps in implementation of strategic financing management for a group enterprise. These conclusions indicate that a group enterprise must establish its guiding principles in strategic financing management, and assess its financing environment and capability in order to form its own strategic financing system. This will allow the group to conduct long-term and systematic planning of its financing activities for sustainable growth, and to achieve the ideal liability and capital structures. The effective implementation of the financing strategies will reduce the group's resource attrition, and enhance its overall risk management capabilities, and consequently achieve greater profitability.The article suggests that a group enterprise should gradually include financing relationship management into its strategic financing management, enhancing company's strategic financing partnerships. Furthermore, it should build a financing platform taken into account the company's overall structural frame, thereby providing a flexible financing vehicle to better service the group's various financing strategies.