Research On Risk Control Strategy Of Baosteel Group In Operation On Borrowings

With the rapid development of China’s economic and social and national policy of continuous change,The internal and external economic environment of the steel industry has undergone tremendous changes.In the steel industry in 2016,the production and sales volume decreased,the steel prices continued to fall,the steel exports continued to grow and the fixed assets continued to decline.The iron and steel industry developed large losses,high asset-liability ratio and financing difficulties.This shows that the steel industry in the new economic environment is facing more pressure and risk.Debt management is a common feature of the current business operation,with the advantages of reducing capital costs and leverage,but also to the enterprise to bring some risks.Therefore,Iron and steel industry in response to changes in the economic environment at the same time need to effectively control the risk of debt management.China’s government to vigorously promote the supply side of the reform of the new situation,the steel industry is facing more pressure and risk.Therefore,the article mainly studies how the steel industry can cope with the changes of the economic environment in the new economic environment of the supply side reform,and how to effectively control the various risks in the process of enterprise development.On the basis of comprehensively understanding the operation status of the steel industry,this paper analyzes the current situation of the iron and steel industry,then understands the knowledge of the relevant theoretical basis of the debt management,analyzes the risks that the debt management will bring to the enterprise,and then discusses how the steel industry responds to the debt management risk.Based on the understanding of the development status of Baosteel Group,Baosteel Group for a variety of indicators to conduct a comprehensive analysis,and studies its debt management under the new policy pattern by selecting the national representative iron and steel enterprise-Shanghai Baosteel The risk of the assessment and analysis of the summary,analysis of Baosteel Group to deal with the implementation of debt risk management initiatives,as well as the inadequacies and causes of the analysis.Through Baosteel in the whole process of steel production financial risk control,risk identification and other aspects of the lessons learned.This paper puts forward the suggestions on perfecting the control and coping strategies of the liability of Baosteel Group in the steel industry,so as to provide useful ideas for the risk control of the liability business in China’s steel industry.