A Case Study On The Stock Investment Of Shanghai RAAS

In recent years,with the decline of real economy investment rate,the level of “financialization" in non-financial enterprises has gradually increased.However,the excessive "financialization" of enterprises may lead to the reduction of investment in real economy,which may eventually have a negative impact on China’s economic development.Stock investment is a common and typical way in the "financialization" of enterprises.However,stock investment is a double-edged sword.Although it may bring excess profits to enterprises,it may also cause huge loss.Shanghai RAAS is an outstanding enterprise in China’s blood products industry,and its huge loss caused by stock investment in 2018 is a typical negative case.This paper takes Shanghai RAAS as a case company,analyzes the necessity and motivation,investment mode and the effect,explores the reasons for its huge loss in 2018,and puts forward some precautions.The purpose of this paper is to help other companies,especially blood products companies,to prevent risks in stock investment,to help our blood products industry and real economy develop better and faster,to reduce the level of "financialization" and the financial risks.First,this article explains the research background,sorts out and reviews the relative existing literature.Then,it introduces the basic theories that may be used later.Next,this article introduces the development status of Shanghai RAAS and the blood products industry,and analyzes the following three aspects:(1)Investment necessity and motivation.In the analysis of the necessity of stock investment,this paper focuses on the main business development,monetary capital adequacy,etc.The analysis results show that it is necessary for Shanghai RAAS to make some investments to obtain more profits,but it is necessary to control the investment risks.When analyzing the motivation,in addition to the main business and monetary capital in the necessity analysis section,this paper also analyzes the company’s development strategy,capital utilization ratio,etc.The results show that the above factors have a driving effect on the company’s stock investment,mainly those internal factors.(2)Investment decision-making process and return of investment.When analyzing the decision-making process,this paper starts from the authorization of venture capital,the choice of investment target company,etc.The analysis shows that the management may have serious speculation psychology and overconfidence psychology.When analyzing the effect of stock investment,this paper describes the return of stock investment from multiple dimensions,analyzes the impact of stock investment on the development of the company’s main business,and concludes that stock investment may lead to a significant decline in the company’s main business performance.(3)Reasons and suggestions for the huge loss.Through a comprehensive review and analysis of the causes and consequences of the company’s stock investment business in the previous article,this paper holds that the reasons such as overconfidence and speculative psychology of the managers,lack of in-depth understanding of the investment object have led to the huge loss jointly.On this basis,combined with the characteristics of blood products industry,this paper first suggests that blood products companies should pay attention to improving their comprehensive strength,focus on the high-quality development of their main business,rather than gaining profits through high-risk stock investment.Secondly,for those enterprises participating in stock investment,this paper suggests that senior managers should avert the overconfident and speculative phschology,the company should strengthen the supervision and guidance to the management,and also suggest that the company should pay attention to the identification and response of investment risk.