The Reserch Of IRFH Application In Overseas Investment Enterprise Risk Management

In recent years, along with China’s economy fast and steady development,state-owned enterprise overseas investment scale is expanding gradually, and lots of enterprises investing in overseas projects. Facing multiple business risk of overseas investment, enterprises are also searching for all sorts of ways and methods to manage various risks and reduce risk occurs loss. Substantial enterprise capital needs to find ways and places both can add value and can avoid the risk. Financial futures market is the ideal place. Interest rate futures is one kind of many financial futures forms. Hedging is the basic market function of interest rate futures.This article stars from interest rate futures and the related theories of hedging, then analyzes and discusses the emergence, development, types and characteristics of interest rate futures as well as the relevant theories of hedging. This paper researches and discusses risk management in overseas investment enterprises and discusses enterprise hedging motives. Aiming at the results of traditional enterprise hedging ratio, this paper uses CVaR method to construct the model and optimize it, and makes empirical comparison on the methods. Finally it puts forward several countermeasures and suggestions on China’s overseas investment enterprises using interest rate futures hedging.