Research On The Investment Efficiency Of Conch Cement Under The Background Of Capacity Reduction

In 2008,the financial crisis spread to China.In order to further expand domestic demand and maintain rapid economic growth,the Chinese government identified ten measures in November 2008-the 4 trillion investment plan.Many industries have developed rapidly,and due to the lag of market regulation,some industries have experienced overcapacity problems.For example,the cement industry is facing the problem of overcapacity.In order to avoid waste of resources and improve the utilization of resources,the Chinese government has issued a number of policy documents on overcapacity in recent years.For example,in the cement industry proposed in 2013,it is strictly forbidden to build new cement production capacity projects and eliminate backward production capacity.In 2014,the cement clinker production and heating seasons were proposed for the cement industry,and the new standards for the cement industry were strictly implemented.In 2016,it is proposed to prohibit the filing and construction of cement clinker construction projects with expanded production capacity by the end of 2020.In this context,the development of enterprises in the cement industry has been greatly affected.How should cement companies develop healthily?In this paper,Conch Cement(HL Cement)was selected as the research object.Through the literature analysis method,case study method and financial analysis method,the investment behavior,investment path and investment effect of HL cement in the context of industrial de-capacity were studied.The development has not been affected by policies,and even has been developed more rapidly.The institutional obstacles proposed by the state in 2010 to eliminate mergers and acquisitions of enterprises have affirmed the investment expansion behavior of the dominant enterprises in the surplus industry.Surplus industries can merge and eliminate backward-capacity enterprises through mergers and acquisitions,increase industry concentration,reduce vicious competition,avoid waste of resources,and achieve the goal of de-capacity.HL Cement is a leading company in the cement industry,and its investment expansion behavior is in line with the laws of industry development and national policies.Therefore,under the theoretical framework of core competitiveness theory,synergy effect theory,scale effect theory and market investment timing theory,the paper is based on the company’s financial data and business information,through investment geographical distribution,investment methods,investment time and The four sources of funds have sorted out the investment behavior of HL cement,and further explored the investment path of HL cement,and then analyzed the investment effect of HL cement,and concluded that HL cement was not affected by industry policies.The article summarizes the successful experience and reproducibility of HL cement,which can effectively solve the development problems of cement enterprises in the context of de-capacity industry,and finally summarizes the limitations of this study and the prospects of future research.The main contribution of this paper is to select overcapacity industries and HL cement companies,not only from the perspective of corporate mergers and acquisitions,but also from the perspective of corporate equity investment and financial investment.It not only contributes to the research of supplementing industries with overcapacity,but also provides some development directions for the development of enterprises in the cement industry under the background of de-capacity and policies that enable the regulatory authorities to further improve the de-capacity of the cement industry.