Research On Exchange Rate Risk Management Of Chinese Corporations Under The New RMB Exchange Rate Regime

Since July 21, 2005, RMB exchange rate regime reformed, changing from pegged to the U.S. Dollar to be with reference to a basket of currencies based on market supply and demand, a managed floating exchange rate regime. After the reforming, RMB exchange rate has displayed the tendency of appreciation in a long-term, fluctuation of exchange rate has the important influence on the operating management of industry enterprises, and the enterprises are facing the risk of exchange rate can not be ignored. This thesis researches the exchange rate risk of the Chinese enterprises under the new RMB exchange rate regime, analyses and assesses the exchange rate risk of different industry and enterprises, and offers corresponding countermeasure of Chinese enterprises to avoid risks.There are five sections in this thesis. The first section analyses that Chinese enterprises need to avoid exchange rate risk necessarily and urgently in the context of new RMB exchange rate regime. The second section focuses on the exchange rate risk management theory and the methods and techniques of exchange rate risk management. The third section recommends the formation and development of the RMB exchange rate regime, analyses the characteristic of new RMB exchange rate regime, and then recognizes the exchange rate risk of the Chinese enterprises. The fourth section is the core content of the thesis, based on the reference of Jorion two-factor model, constructs a single and an augmented currency exchange rate risk assessment model, and develops a exchange rate risk exposure decision model, collects representative corporate financial data and related economic data in each industry, takes Pooled Least Squares Estimation to examine the exchange rate risk exposure and the determinants of the exchange rate exposure of the different industry enterprises, analyses the exchange rate fluctuations on the impact of China's enterprises under the new RMB exchange rate regime. The fifth section proposes the countermeasure and measures of Chinese enterprises to avoid exchange rate risks from the macro and micro dimensions.