A Research On Exchange Rate Risk Management Of China's Shipbuilding Enterprises

In recent years, China has achieved a leap in the development of shipbuilding industry. As the "going out" strategy had been further implemented, the number of exports of ships increased rapidly. Now, China has already become one of the world's major shipbuilding centers. Shipbuilding industry has always been an export-oriented industry with high degree of internationalization, and more than 70% of the productions of China's shipbuilding are exported to foreign countries. As the commercial ships export mainly use U.S. dollar as clearing tool, so the fluctuations of exchange rate inevitably impacts on the development of domestic shipbuilding enterprises, no matter now or in the past or the future.As the internationalization process of the shipbuilding industry speeds up and China's foreign exchange management system reforms go deepening, the impact of exchange rate movements on the China's shipbuilding industry become more and more serious. Exchange rate risk management has become one of the important problems which China's shipbuilding industry must face and resolve. China's shipbuilding industry should strengthen the exchange rate risk prevention awareness as soon as possible and take positive action to reduce the losses to a minimum.This article is divided into five chapters: Chapter I, introduction, briefly introduced the topic background of this article and significance of this research; Chapter II, Analysis of the exchange rate risk characteristics for China's shipbuilding enterprises, and its impacts on the business and development of the enterprises; Chapter III, Analysis of experiences on Japan and South Korea's shipbuilding enterprises in dealing with exchange rate risks and enlightenment; Chapter IV, introduced several common exchange rate risk management strategies for the shipbuilding enterprises and their respective characteristics, and has given the ways to choose the effective exchange rate risk management strategies for shipbuilding enterprises; Chapter V, on the basis of the problem-analysis of the current exchange rate risk management of China's shipbuilding enterprises, the author combined practical experiences in exchange rate risk management, and has given the proposals of exchange rate risk management in China's shipbuilding enterprises.In China, the study of exchange rate risk management started late, and has gradually been understood in recently ten years. At present, whether it is domestic or foreign countries, enterprises extremely rare explore the research on the specific impact of exchange rate risks from the micro-level. The author proposed the related strategies to avoid exchange rate risks in a micro-level for shipbuilding enterprises: first, the shipbuilding enterprises should to make good use of the banking business of foreign exchange funds, financial services and specialized consultants, rationally and effectively to avoid exchange rate risks; Second, in different business environment or the RMB exchange rate environment, the shipbuilding enterprises should choose the trade strategy, financial management strategy or financial instruments strategy to avoid the operation of exchange rate risk flexibly; Third, the shipbuilding enterprises should enhance their training on the talent of foreign exchange risk management, establish the correct chosen mechanism of the exchange rate risk management strategies, and select the right risk management strategy on exchange rate; Finally, in fact that no method can completely eliminate all foreign exchange risks, the factors impact of exchange rate risk have been undergoing changeable, the shipbuilding enterprises should be based on the factors impact the exchange rate risks to chose the corresponding risk management strategy change in the exchange rate.