Research On The Fund Administration Of Hainan State Farms Group Finance Company

It was1987when china’s first finance company was set up. Up to now, finance companies have been developing for over30years and have achieved remarkable results. At the end of the2013, there were175finance companies nationwide. The total asset internal and external balance sheets of these finance companies were414billion. The owners’equity were350billion and the average capital adequacy ratio was28%.The financial company industry has grown up so quickly that it is can not be ignored in China’s financial market. Due to many factors, such as the service member, the limitation of the source of founding to the deposits of group units, and other special regulatory requirements, there are several problems in the fund management of finance companies.As the leading financial enterprise in Hainan Nongken Group, Hainan State Farms Group Finance Co. Ltd(its short form is Haiken Finance Company) has made outstanding contributions in increasing revenue and efficiency since its foundation. However, its capital management method and effect is not satisfactory.. In the global economy slowdown period, Hainan’s financial market is also stretched. Therefore, for the newly formed Haiken Finance Company, it is of great necessity to strengthen capital management.Through research, the capital management of Haiken Finance Company is mainly based on non banking financial institutions and through financial markets platform the operation is accomplished. The main content of the capital management is the capital budget management, fund raising management, funds trafficking management, capital settlement management and risk management of funds. The capital management is relatively backward and there are also many common problems, such as the difficulty of capital accumulation, the limitation of the scope of business, the quality of the capital plan, the lack of professionals, the low degree of information, the risk management and etc. The author considers the countermeasures to solve these problems are to strengthen the budget management, expand the financing channels for enterprises, enhance the capital operation management, reinforce risk management, improve the level of information management and intensify personnel training. Therefore we can improve the comprehensive capital management ability of Haiken finance company, better play its financial function and represent the enterprise value of fiance companies.