HS Media Group Fund Centralized Management Reserch

HS Media Group is a corporation which focuses on providing the advertising-relatedbusinesses depending on its China-Mobile TV network. After more than six years’ operation, ithas built up a Mobile TV network covering over20major cities throughout china at present.With70%of coverage of its mobile TV network in China’s market, it has grown into a nationalmedia group on the basis of a regional advertising media successfully. In the process of itsdevelopment, HS group has been fully supported by venture capitalist, so a large amount ofcapitals has been invested to HS Media which further accelerated its national expansion andresource integration rapidly. However, at the same time, some problems related to managingcapitals effectively etc. became gradually apparent. At the beginning of its business operation,the corporation adopted the decentralized mode of managing its capitals; therefore, itswholly-owned subsidiaries could have rights to manage its capitals respectively allocated by thecorporation. However, due to its decentralized way of managing its capitals, the corporationcould not control the overall financial situation inside the corporation timely by finding theexisted risks so that it could not allocate and make full use of its capitals effectively. As theabove problems caused its capital chain almost broken for many times, it decided to adopt somemeasures of reforming on its centralized capitals management mode.This paper focuses on the centralized management of capitals of HS Media Group. Basedon referring to the centralized modes of managing its capitals implemented by domestic andforeign enterprise, this article discusses the ways of implementing centralized management ofcapitals of HS Media Group by analyzing the disadvantages of decentralized mode of managingits capitals.The paper is divided into six parts. The main contents include the necessities, goals,characteristics of centralized management model of capitals the corporation should adopt. Inaddition, it discusses its process of implementing the centralized management of capitals, itsconstruction of rules and regulations including financial revenue and expenditure andcomprehensive budget management system, its options of centralized fund management modesincluding clearing center and the cash pool mode, the implementation and utilization ofinformation technology tools to centralized management of capitals including online banking andbank-enterprise ERP interconnection. Finally, it evaluates the effects of adopting its centralizedmanagement of capitals in view of four aspects including account management benefits, capitalmanagement efficiency, operation management efficiency, investment and financingmanagement effectiveness. And it proves the centralized model of managing capitals is asuccessful and suitable way of managing its capitals for the corporation. Moreover, it alsoillustrates the risks and the methods of controlling its risks behind its centralized managementmethods, and introduces the principles of risk management, and as well as how to take means tocontrol risk. In the last chapter, it discusses its future capital management, including the combination offinancial company with settlement center, establishment of regional financial center, etc. In thefuture, I believe the most important practices for me is how to put these design in right place,promote its healthy functioning, find and solve its problems and to make its centralized capitalmanagement more scientifically and effectively.