A Case Study Of The Causes And Effects Of The Financialization About Huamao Company

According to the wind database disclosed the main business income sub-industry statistics,which shows that since 2009,an average of 250 entities each year involved in the financial and real estate industry to varying degrees,these industrial capital in the real estate and financial industry income of about 20% of its main business income,and is still on the rise.With the change of China's manufacturing environment in this century,the whole industry is suffering from serious overcapacity.At the same time,the return on investment in real estate industry is declining,while the return on investment in real estate and other financial industries is getting higher and higher.As a result,many real estate enterprises are turning to financial investment,resulting in the trend of China's manufacturing industry becoming more and more financial.In this context,this paper starts from the textile industry in the real enterprise,selects the representative Huamao stock,and conducts a case study of its financial motivation and influence.And through the financial comparison between Huamao stock and Huafu fashion,we can draw the following conclusion: the motivation of Huamao stock's financial behavior is investment substitution,and the immediate financial behavior is not to serve the main textile industry,but to make investment profits.And through the financial analysis,it is found that in the process of its financing,through holding the shares of Guotai Junan and other securities companies,it obtains dividends,but the funds it obtains through the financial asset investment are still used to expand the financial asset investment,rather than expand the textile production of the enterprise.Through performance comparison,we find that Huamao stock is not as fashionable as Huafu in terms of debt paying ability,operation ability and growth ability.Generally speaking,the development of its actual business department is ignored due to the development of finance.Through the case study of Huamao company,it is concluded that the financial behavior of the enterprise does not promote the long-term development of the main business of the enterprise.On the contrary,due to the deepening of the financial degree,the enterprise is more inclined to invest in financial assets,ignoring the main business production.At the same time,enterprises focus too much on financial investment,which will lead to the low efficiency of entity business management,and the profitability of the entity business department will further decline,resulting in a vicious circle.In the long run,although the enterprise's financial behavior has brought short-term high profits to the enterprise,its damage to the entity business can not be made up,the enterprise's operating performance level continues to decline,and the development of the entity department will surely miss the opportunity to expand reproduction,resulting in the decline of the entity business.Therefore,the real enterprise should carefully weigh the advantages and disadvantages of the financial,give full play to the positive role of the financial,and play a role of "back feeding" for the main business rather than "crowding out" consequences.