Research On The Evaluation Of Financing Risk For H Full Foreign-owned Company Limited

Nowadays global economy speeds up significantly. Chinese market gradually become a "hot spot ", especially after the subprime mortgage crisis in2008. Many foreign-owned enterprises have entered into Chinese market, foreign-owned enterprise H Shenzhen Co. LTD.(hereinafter referred to as H Company) also decides to enhance brand promotion and expand reproduction in Chinese market. Brand promotion and reproduction expansion cannot be developed without fund, how to finance and financing risk management become the key point of enterprises.H company is a foreign investment enterprise, and also is a part of the multinational group. The parent company of H Company is in the United States and H Companies also have affiliated company in other Asian countries. It is relatively complex when choosing financing channels due to the background, in addition to a small amount of retained earnings financing, H Company mainly adopt debt financing channel. The way of debt financing has inter-group financing, loan financing from foreign financial institutions and loan financing from the domestic bank. Different financing ways have different financing risks, and if the raised capital can’t create good benefits, fail to repay funds on time, it will bring financial risks to the company, even lose insolvency and lead to bankruptcy. Based on H Company as the research object, this paper makes an intensive study around the key problem of financing risk management.First of all, this paper generalizes the theory of financing risk management, makes capital structure, risk management, financing risk management and related theories as the theoretical basis of this paper. Then, this paper introduces H Company’s operating status, capital structure, present situation of financing risk management and main problems of financing management. Secondly, explain and identify the risks of the selected financing channels, including the cause analysis of financing risk. Again, determine the financing risk evaluation indicators and risk evaluation based on efficacy coefficient method. Finally, put forward risk management strategies according to self-risks, including debt risk management strategies, financial market risk management strategies, credit risk management strategies and safeguard mechanism for the effective execution of risk management.Based on the research of H Company’s financing risk identification, risk evaluation, risk control strategy, it is helpful to understand the problems existing in the financing management of H Company and the cause of the financing risk, establish and improve the financing risk management system, enhance the H Company’s financing risk management and control level. Meanwhile, it also has a reference function for the foreign-funded enterprises that are similar to H Company.