Feasibility Study Report On The Establishment Of Finance Companies Of Sinosteel Corporation

This paper gives a feasibility study on the establishment of finance companies of large enterprise groups in China based on Sinosteel Corporation.The first part of the paper gives an overview on the concept of large enterprise group, in theoretical and practical ways, current situation and features of the large enterprise groups in China, the experience accumulated in fund management by the large enterprise groups and the shortcomings, as well as the establishment and development of finance companies in the large enterprise groups in China.The second part introduces Sinosteel Corporation from the aspects of company background, organizational structure, financial management and fund management to enable the readers to acquire a basic understanding Sinosteel Corporation and its financial condition. In the meanwhile, the writer gives an evaluation on the fund management in Sinosteel Corporation, and thus implies the necessity of a finance company.The third part puts forward the assumptions of the establishment of a finance company in Sinosteel Corporation, introducing the basis and purpose of a finance company, overall framework of the establishment of a finance company, it business volume prediction and earning mode.The fourth part of the paper points out the questions arising in the establishment and operation of the finance company in Sinosteel Corporation, and thus gives corresponding polices and suggestions.The last part comes to the conclusion that the establishment of finance companies is inevitable with the further development of the large enterprise groups in China and the increasing demand for fund management and financial services. With Sinosteel Corporation as an example, some large enterprise companies are able to establish finance companies, design and construct finance companies reasonably according to the actual conditions. Those enterprise companies shall put emphasis on the challenges confronting finance companies, take the positive role of finance companies into full play, thus turn the finance companies into new important management means and profit sources.