China Eastern Electric Group Company Funds Centralized Management Research

Fund centralized management is one kind of intension fund management pattern, which is commonly adopted in large enterprise groups in the world. The essence of fund centralized management is that headquarters of enterprise groups concentrate on the entire funds, then build its own cash pool being managed and operated by headquarters of the enterprise groups to realize synthetical benefit of the entire funds. Moreover, using supervision measure such as fund budget etc, to defend and control financial risks effectively. Fund centralized management is remarkable role in the field of integrating inside resource, consolidating management, reducing financial costs, accelerating fund turnover, controlling financial risks, strengthening the fund and subsequent development ability of enterprise groups and so on. Especially to make use of finance company as a platform to carry out Fund centralized management, not only help finance company to develop and expand, but also combine industrial capital and finance capital organically through finance company, so that Promote development of enterprise groups tremendously. This mode of fund centralized management is used by large enterprise groups in the world, there are a lot of successful cases.Dongfang Electric Corporation (DEC) is seeking for becoming the enterprise groups that have international competitiveness, exploring transformation in field of Management system, development pattern, and probing the business administration revolution which face intensivism and refinement. The core of business administration is financial management, and the core of financial management is fund management. There are many shortcomings in current fund supervisor mode in DEC, it is already unsuitable to adapt the demand of enterprise’s development. DEC should learn the successful experiences of the famous enterprise at home and abroad, those carry out fund centralized management sufficiently, and make full use of finance company as a finance platform to carry out fund centralized management. These are the necessary choices of DEC to carry out fund centralized management actively, and also best cut-in point of revolution what face intensivism and refinement. There are some problems and difficulties when DEC carries out fund centralized management, at the same time,there are a lot of advantages, such as finance company platform mode, management plan of quota account and zero balance account, two independent cash pools and so on, all of these proposal will be helpful to carry out fund centralized management in DEC.