Centralized Funds Management Of Enterprise Group

Enterprise Group is a core enterprise-oriented economic union，which as the mainlink between property rights coupled with a certain scale and common strategicobjectives.In recent years, Enterprise Group has developed rapidly under the realizationof business expansion behavior such as the asset restructuring, mergers and acquisitions.and is increasingly becoming an important subject in the social and economic activities,to showcase the country’s international competitiveness. Therefore, the EnterpriseGroup’s core capital management issues have gradually become the focus of thetheoretical and practical research.In china, the economies in transition and the external capital market is not veryperfect, especially the current tight liquidity environment. Enterprises subjected tostrong financial constraints in the process of access to external financing. In this case,the internal capital market reconfigured the limited resources effectively among themembers of the unit. The conditional enterprise groups coordinate capital surplus anddeficiency through the implementation of centralized fund management, which canreduce the financial risk, improve capital efficiency, enhance the competitiveness ofcompanies. Centralized funds management of the Enterprise Group as a researchthrough the establishment of a centralized fund management system, improve thecentralized capital management model, hoping to provide effective recommendationsfor capital management of enterprise groups in China.The research idea is as follows: starting with the theories of centralized fundmanagement and the environmental factors, the paper formulates the conception of thecentralized fund management. It adopts conventional analytical methods, and analysesthe necessity and feasibility of application of centralized fund management, from thetheory and practice in-depth in order to find out the problems and causes.Finally, itcombines with Chinese national conditions and learns from the advanced experience athome and abroad, and then it proposes countermeasures about the effectiveimplementation of centralized fund management in China.Firstly, this paper introduces the conception of centralized fund management. Thenit analyzes that the features and patterns of centralized funds management, and brieflydiscusses the theoretical basis of the centralized funds management, including theinternal capital market theory.Secondly, the paper describes the necessity and feasibility of centralized fund management. Discusses the feasibility from three parts such as the relationship betweenownership and the system of centralization and decentralization, IT.on the other hand,the paper highlights the necessity from the surplus and deficiency, credit rating, useefficiency, risk prevention and response to tightening environmental advantages.Thirdly, based on the analysis earlier in the paper, it analyzes the problems in themanagement process: first, phenomenon of low efficiency in the use of funds; second,approval procedures formality of centralized funds management; third, IncreaseFinancial Risk Factors; forth, inadequate supervision of the centralized fundsmanagement.fifth, centralized management of funds results were not shared.at the sametime, the paper also analyzes the reasons: first, traditional fund management enterprisegroup way behind; second, imperfect approval system for centralized management;third, centralized funds management lack of risk awareness;forth, difficult to monitormembers significant funds dominance;fifth, misunderstanding between decentralizationand centralization.Finally, Introduce the measures and the revelation of the G Group,the effectivesuggestions on the application of the centralized fund management in China have beenput forward: First, we should improve the process of the informationization; second, wehave to make clear approval procedures and responsibilities; third, we should pay muchattention to the implement management system of centralization and decentralization;forth, we have to improve centralized funds management risk awareness; fifth, we canimproving internal supervision and control of funds.Research have shown that group centralized funds management is not applicable toany enterprise group, it should be make the appropriate adjustments as the marketenvironment changes, the development and application of science and technology, thescale, objectives and strategies of the enterprise group. The paper analyse theproblems of centralized funds management and tap its reasons in conditional enterpriseby grasp the "degree" perspective point, and then try to explore some effectivecountermeasures.The purpose is explicit enterprise orientation, to achieve improvedefficiency in the use of funds, reduce the cost of the use of funds, and control ofenterprise financial risk, which is the writing of this article in mind.