On The Innovation Of Large And Medium-sized State - Owned Enterprise Financing Strategies

Being the pillar of China's national economy as well as the main distributor of China's financial revenue, the financial activities in such large & medium-sized state-owned enterprises have always been drawing people's attention. In recent years, these large and medium-sized state-owned enterprises have made a great progress in their financial activities, but there are still some problems, among which the most crucial one is that the financial strategy does not match the overall development strategy of the enterprise. In order to solve this problem, we must grasp the overall strategy of these enterprises clearly. The special role of large and medium-sized state-owned enterprise played in system of socialist market economy determines its ultimate value orientation is to possess the core competence and industrial control ability. For achieving that, the enterprise must practice intensified business mode, so that more resources can be invested into the innovation to promote this activity turns to be a routine and sustainable one. Regarding the innovation, it never just means the technical innovation, for the enterprises with the different production and business elements, the way to form and strengthen their core competence differs from each other. According to overseas corresponding company's experience, the core competence especially the industrial control ability mainly derive from the technical research & development ability and sales ability of financial service, therefore, the domestic companies should concentrate on these two aspects to get new breakthrough. The large & medium-sized state-owned enterprise must base on this to identify its matched financial strategy. Under this guideline, the large and medium-sized state-owned enterprise must put its financial focus on the investment to make the investment conventional, sustainable, prospective and reversed. Therefore, the large and medium-sized state-owned enterprise had better implement its financial strategy by integrating the industry with finance.