Real Options Analysis Of Steel Projects Invertment For HS Companies In Indonesia's

China's economy grows fast and in the transition period of strategic opportunities,facing the adjustment of economic structure.However,at the same time,some traditional industry is facing domestic overcapacity and lack of demand.Among them,Chinese steel industry need new development and profit growth.Therefore,research on China's iron and steel enterprises is very important,especially in analysis of overseas investment decision-making process.The research content of this article is mainly based on the actual process of Chinese steel companies investing in Indonesia.It uses the binary tree real options approach from the three levels of the macroeconomic environment at the national level,industry development and prospects at the industry level,and the financial status and return on the enterprise level.Analyze the project decisions of overseas investment steel companies.First of all,investigating overseas investment by Chinese enterprises,going global for steel companies,and investing in Indonesia to find out the difficulties and problems in the overseas investment of Chinese steel companies going to Indonesia and seeking solutions to investment decisions.Secondly,applying the real option theory,the real-time dynamic analysis of binary real options for each stage of corporate investment decision-making is conducted to better analyze the overseas investment process of the company.Thirdly,the analysis of investment behaviors of HS companies investing in Sulawesi nickel-iron industrial park in Indonesia mainly includes Indonesian investment environment risk,analysis of nickel-iron industry,analysis ofbasic conditions of nickel-iron industrial park projects,and analysis and investment in real option of entering options.Nickel ore and coal mines are analyzed on the basis of real options for upstream and downstream integration,and integrated real estate options for production and sales of investment ports.By comparing the initial investment amount with the value of the real option,it is relatively easy to consider and analyze the initial investment return.Finally,based on the analysis results of real options,we provide certain policy recommendations for overseas investment by Chinese iron and steel enterprises,mainly from the guidance of real options on the entry or exit of steel companies,the analysis of the role of real options in upstream and downstream mergers,and the adoption of financial innovations in China.Businesses go out to provide support and other aspects.The analysis results of this paper show that real options can reflect the macroeconomic uncertainty at the national level,price fluctuations at the industry level and market changes,and the development prospects at the enterprise level,and play an important role in guiding corporate investment.Through uncertainty analysis,it is possible to clearly identify the types of risks that may occur in an investment,so that problems can be discovered in a timely manner,risks can be avoided,and reference values and arguments can be used for overseas investment projects of enterprises.