Exploration And Study On The Financing Problems Of Forestry Enterprises In China

The forest resources around the world have become increasingly scarce in recent years, and the ecological living conditions have also become gradually deteriorating, as a result, forestry has once again become the core focused by all walks of life, meanwhile, the importance of forestry development for the overall economic development has also gradually embodied. Forestry industry needs to solve two major problems during the process of moving:firstly, economic development has improved people’s living standards while it also has spawned a booming demand for forest ecology. In recent years, the environmental protection measures have improved the ecological environment at the local level, but the current situation continues to worsen on the whole; secondly, the consumption of forest resources has greatly increased along with the implementation of forestry key engineering, which has stimulated the market demand for forest products to a large extent, so the conflict of supply and demand of forest products has further escalated. Therefore, the forestry development calls for an integration of multiple benefits, so as to achieve a common vision of promotion.In recent years, the government has increased the funding for forestry, however, limited by the fiscal funds allocation, it will ultimately affect the process of the rapid development of forestry if the investment of central authorities is taken as the foundation of development. At present, the investment subject of forestry is still dominated by financial investment, and the investment of foreign capital and social capital is obviously too small. On the one hand, it is difficult for the management subject of forestry to meet the requirements of the credit terms of financial institutions due to some reasons, such as the fragility of forestry, the features of industry management, and so on, and there are limited channels for the subject to access to capital, they are facing financing difficulties. It is unrealistic to promote the development of the whole forestry industry only relying on the accumulated management of enterprises and the investment of original shareholders. On the other hand, because of the asymmetric information of the supply and demand sides, the social investors have insufficient understanding on the features of forestry management and industrial policies, so it is difficult to judge the return and risk levels of investment, together with the imperfection of relevant policies supporting measures, as well as a shortage of way to guarantee the profit realization, the forestry financing develops slowly.This paper analyzes the current situation of forestry financing in China, finding some reasons that hinder the smooth progress of forest financing. It carries out analysis of the reasons, exploring feasible solution, mainly coming to the fowling conclusions:(1). Provide appropriate preferential policies and set up loan insurance mechanism so as to attract the participation of financial institutions and enthusiasm of forest right financing; (2). Improve the forest assets evaluation and perfect assets disposal system so as to avoid the existential risks of forest right mortgages; Improve the cooperation between banks and forest, and increase government support so as to reduce the costs of forest right financing; (4). Innovate financial products to improve the difficult positions of forest resources asset such as low mortgage rate, short mortgage term, and so on; (5). Perfect the construction of diversified financing channels, and accelerate the construction of forestry capital market so as to improve the financing level of forestry enterprises and broaden the financing channels; (6). Innovate and develop forestry insurance system so as to promote the development of forestry insurance system.