The Research Of Practical Function And Development Strategy Of Finance Company In Power Sector

Financial management is the core of enterprise management,and funds management is the key element of financial management,what's more,the centralized management is at the core of funds management.As the lifeline of an enterprise,the quality and efficiency of funds management will directly impact the stability of enterprise group development.The mighty conglomerates execute centralized management by setting up finance firms,joining forces instead of remaining inner solitary activity,will efficiently advance returns of fund value as well as reduce risks.In the development of finance companies,the basic condition that based on the group and service for the group has never changed.Closely connected with the entity economy,especially with the entity enterprises,finance firms possess distinct superiorities in financial sector.The progress of a finance firm tie up with its enterprise group,only by dedicating itself to the flourish of the group,can the finance company obtain a better development environment.On the other hand,if the industry faces a depression status or the enterprise group keeps in tough times,the finance company will under considerable operating pressure as well.Over the course this study,the practical function and development strategy of finance company will be the research priorities.With a case study of Hubei Energy Finance CO.,LTD.,a non-profit branch,which consistently adhere to the “based on the group,service for the group” for the purpose of the operation,attach equal importance to management and services,cooperate with group financial department,integrate finance into business synergistically,combine finance with industry organically and ultimately realize the target that maximize benefits of the group,a study process of “Literature Review — Status Analysis — Discussion and Analyze — Findings and Suggestions” will adopted in this paper,and then put forward that financial firms should keep in step with the development strategy of the group,promote the cash concentration of member units,make a contribution to enterprise development with effectively utilize of funds.This study emphasizes on the research of finance firms in the power sector.First of all,the paper will briefly analyze the characteristics of finance firms in electric power industry combining with industry data issuing by China National Association of Finance Companies.Secondly,takes the Hubei Energy Finance CO.,LTD.as an example,this paper will analyze how a finance firm could rely on the enterprise and realize synergistic development strategy through personal and business integration.Finally,by discussing and analyzing the difficulties that Hubei Energy Finance CO.,LTD.has faced,this study will try to lay out some suggestions to help enterprise clearing the function position of finance firms,extending the control by supervision organizations and eventually promoting a sustainable and positive development of the industry.In the end,with a system analysis,this paper draws a conclusion on the practical function and development strategy of finance firms: only by counting on enterprise with effectively synergistic development strategy,can finance and industry will flourish and expend in a mutual promotion process.