Business Model And Risk Management Of Financing Trade For Chinese State-Owned Enterprises

As the global economic growth slows down,China has repeatedly lowered its economic growth forecast.The overcapacity of steel and other commodities has been in the downward channel for a long time,and the risk of commodity financing trade has been frequent.State-owned enterprises use their own good credits to obtain a large amount of loans from banks,and often play the role of “shadow bank” and “second bank” in the commodity financing trade business,providing private enterprises with shortage of funds and financing difficulties.Since state-owned enterprises cannot monitor the funds of private enterprise accounts in real time like banks,they cannot track each batch of goods in real time.When the market fluctuates drastically,private enterprises are not well managed,funds are malicious taken from state-owned enterprises,the state-owned enterprises often have lost both money and goods,becoming the last buyer of risk loss.Therefore,since 2013,the State-owned Assets Supervision and Administration Commission of the State Council has issued relevant documents six times,requiring central enterprises to strengthen the risk prevention of bulk commodity business.Commodity financing trade often hides the financing in the name of trade,so it has a strong concealment in the actual business development process.This paper first explains the main concept terms such as commodity,trade financing and financing trade,and puts forward their own characteristics and differences.Secondly,it summarizes five common large-scale risk financing trade patterns,and the specific classification describes the corresponding business.Process and characteristics;Thirdly,it puts forward four common factors that cause the risk of state-owned enterprises in the financing of bulk commodities,and focuses on the analysis of credit risk and operational risk.Fourth,it proposes that the risk of commodity financing trade is not only State-owned enterprises directly harm the economic losses and the risk of being sued,and also cause indirect harm to the state-owned enterprises causing the main business to be abandoned and the credit rating to be damaged.Finally,based on the collected data of 15 state-owned enterprises,the risk factor control hypothesis is proposed and Stata is used.Conduct an empirical test.The conclusion of this paper is that the proportion of state-owned enterprises in the risk of commodity financing trade is closely related to whether the upstream and downstream cooperative enterprises are both private enterprises and whether the national credit is greatly tightened.Furthermore,it makes recommendations to state-owned enterprises,and reduces risks by strengthening the classification and management of cooperative enterprises and establishing early warning indicators.