Foreign Exchange Risk Management Strategy Of Multinational Manufacturing Enterprises In China Research

Since the RMB exchange rate mechanism was changed to the quotation mechanism of "closing rate + exchange rate change of a basket of currencies" in 2015,the RMB has ended the long-term trend of unilateral appreciation against the us dollar since 2005,and has shown a significant cyclical conversion of appreciation and depreciation.With the expansion of economic globalization and the continuous promotion of "going global" strategy,more and more manufacturing enterprises in China go abroad for production,operation,investment and financing activities to improve the degree of internationalization of enterprises.However,the frequent fluctuation of exchange rate in this process aggravates the uncertainty of mnes’ judgment on future operating results and cash flow,which brings greater risks to enterprises.Therefore,this paper takes fuyao glass,a manufacturing enterprise with a high degree of internationalization,as the research object,analyzes the impact of exchange rate fluctuations on its corporate value,and discusses how China’s multinational manufacturing enterprises should cope with,avoid and manage foreign exchange risks.Firstly,this paper analyzes the foreign exchange risks of fuyao glass from three aspects: operating activities,financing activities and investment activities,and introduces its foreign exchange risk management strategies.Second examines the exchange rate fluctuations on the impact of cash flow and stock returns,and by using Stata analysis tool to measure the exchange rate volatility on company value influence fuyao glass,fuyao glass mainly overseas income of two currencies exchange rate changes impact on the company’s cash flow and stock returns were not significant in statistics,obtained the conclusion of its foreign exchange risk management effect is good.The conclusion of this paper shows that multinational manufacturing enterprises are faced with more complex and frequent foreign exchange risks when they conduct production,operation,investment and financing activities overseas,but reasonable use of hedging strategies can help enterprises effectively reduce the loss of foreign exchange risks to the company’s value.Therefore,based on the practical effect of fuyao glass foreign exchange risk management,this paper provides a reference for more and more Chinese manufacturing enterprises to carry out foreign exchange risk management.