Risk Assessment Of Supply Chain Finance Financing Of China's Steel Trade Enterprises

Steel trade enterprises play an important role in the development of China's iron and steel industry,not only as agents of upstream steel plants,but also as a bridge to connect downstream end users.Steel trade enterprises generally need to pay in advance to the steel plant and the terminal,so they need a certain amount of liquidity.Most of the iron and steel trading enterprises are small and medium-sized enterprises,and they are generally faced with financing problems under the traditional credit mode of banks and other financial institutions.The financing problem is a crucial problem that restricts the development of steel trade enterprises,so solving the financing problem of steel trade enterprises can better promote its development.As steel trading enterprises are traditional industries,supply chain finance belongs to a relatively new financing mode.Scholars have rich research on supply chain finance,but there is less research on the financing mode of supply chain finance for steel trading enterprises.Therefore,this paper chooses this industry as the focus of this paper,in order to provide some theoretical support for the development of steel trade industry.Based on previous studies,combined with the development status of supply chain financial financing of China's steel trade enterprises,this paper focuses on how to identify and evaluate the supply chain financial financing of steel trade enterprises In order to make banks and other financial institutions more accurate judgment on the supply chain financial risk of iron and steel trading enterprises,and provide reference for scientific prevention and control of supply chain financial risk of iron and steel trading enterprises.Supply chain finance can make full use of financial resources efficiently,and core enterprises play a crucial role in the operation of supply chain finance.Banks and other financial institutions can give credit to small and medium-sized enterprises in supply chain finance according to the status of core enterprises in supply chain finance,which can control the risk of supply chain finance to the maximum extent.This paper studies the role of iron and steel trading enterprises in the supply chain finance the main body range involved in the financing process,the main financing mode,as well as the causes and characteristics of the risks faced by banks and other financial institutions in this financing mode.Then,the data of 96 enterprises listed in Shanghai and Shenzhen stock markets,which are mainly engaged in iron and steel trade,and their core enterprises in the supply chain,are selected for two years.According to the selected evaluation indicators and the data of these enterprises,the principal component analysis is used Finally,from the social level and financial technology level,countermeasures and suggestions are put forward to prevent and control the supply chain financial risk of iron and steel trading enterprises.