The Discussion Of ChangHong Group Liquidity Risk Management Issues

With the further development of the reform and opening up and the economic globalization,Chinese enterprises have entered a new period of development,facing the increasingly complex competitive environment at home and abroad.More and more listed companies begin to issue shares.Besides,a large number of multinational companies begin to enter the Chinese market with China's entry into the WTO.In the perspective of abroad,the financial crises which are resulted by the defaults and the dramatically drop of the asset prices have given a shock on the global economy.In this environment,the business development of the enterprise will face the risk of diversified.The enterprises must take measures to deal with all aspects of risk.At the same time,the enterprise liquidity risk problems stand out increasingly,which have made the cash flow of the enterprise in crisis situation.Therefore,the company's liquidity is of great significance to the enterprise's sustainable development.Today,more and more managers pay attention to the company's liquidity.In daily operation process,the company must be able to keep enough resource channels to obtain liquidity.The liquidity is very important for the company's daily operations for the inevitably difficulty in cash flow.For liquidity risk management research,the current scholars have a preliminary summary on its connotation,form factor,management content,the liquidity risk measurement methods and general management mode.The study also paid attention to the association of the liquidity and the financial operations.However,because liquidity risk management started late in China and the lack of the complete system of liquidity risk,the management measures and the concrete implementation is still very immature.This paper has chosen Changhong Group as a case study in order to find out the problems existed in the liquidity risk management of Changhong.Besides,the article aims to put forward the countermeasures and Suggestions to solve the problem and improve the liquidity risk management status.Ultimately,the article wants to provide some reference opinions for the liquidity risk management problems of the Chinese listed companies.Firstly,this paper introduces the liquidity risk management deficiencies and the cause of these weaknesses by analyzing the management status of its liquidity risk.Then draw lessons from the advanced management methods by introducing foreign outstanding management on liquidity risk management method,comparing the company's management mode.Synthesis of Changhong Group operating conditions and the foreign advanced management concept,internal coordination and alignment of Changhong Group,the management of liquidity risk put forward concrete and operable measures and Suggestions.Considering the condition of Changhong Group business,the paper has put forward concrete and operable measures and Suggestions on its liquidity risk management.In this paper,the first part is introduction,including the research background and significance,the domestic and foreign research literature review and the writing ideas and research methods;The second part is about the theory of corporate liquidity and liquidity risk,and the common methods of liquidity risk management;The third part is the basic experience and financial conditions of Changhong Group;The fourth part is the problem of its liquidity risk management and the reason analysis;The fifth part introduces a foreign advanced case of liquidity risk management for Changhong Group.The sixth part is the liquidity risk management suggestions,including how to improve the measurement of Changhong Group liquidity risk,how to improve liquidity risk management ability of the system construction,and specific Suggestions about how to do for liquidity risk management;The last part is the conclusion.Through the case study of Changhong Group,it is obviously that the liquidity management and measurement of liquidity risk monitoring is an integral part of daily operations.In order to control the liquidity risk,the enterprises should synthesize the firm's liquidity,cash flow,working capital,capital structure and other parties,using a variety of means such as the cash flow indicator system,asset quality monitoring,the warehouse liquidity.These methods and strategies are helpful to improve liquidity management in practical application.This paper can provide the reference for the theoretical circle to construct the system of enterprise liquidity risk management framework.In addition,the suggestions can provide practical references for the enterprise to improve its liquidity risk management.