Research Report On Optimization Of Exchange Rate Risk Control System For International Engineering Contracting Business Of Chinese-funded Enterprises

With the deepening of the globalization process as well as the construction industry in recent years in our country enter the peak production will face construction under the pressure of market saturation,the construction industry in our country must integrate with the world market to adapt to the globalization process,only to enter the international market to make our country construction enterprise long-term,sustained and sound development.Therefore,Chinese construction enterprises go abroad to enter the international market is the only way.International engineering contracting the multinational management generally more complex than domestic enterprise project management,risk types,more and more complex and more difficult to forecast and management.And China's international project contracting enterprises entering the international market is bound to in the face of a volatile international exchange rate changes,exchange rate risk in the international market losses is immeasurable,especially the listed company,the failure of the exchange rate risk control could be swamped.Therefore to establish a specific operation,sustainable and efficient exchange rate risk control system,implementation and strengthen the exchange rate risk control,for international project contracting enterprises is of far-reaching significance.About exchange rate risk control ability,therefore,decided to China's international project contracting enterprises can be based on the international market and development.It is against this background,this paper chose the foreign contracting engineering company as the research object,to exchange rate risk as topic selection,research of its control system,help foreign contracting engineering company reduce because losses caused by exchange rate risk.Based on SINOHYDRO BUREAU 14 CO.LTD as an example,this paper deeply within the group to understand their business model and characteristics,and its face currency risks taken by the method and strategy of the Chinese international engineering contracting business exchange rate risk control system construction to provide the opinions and Suggestions.Before is different from most of the international project contracting enterprises exchange rate risk control as the subject of the article,this article thought that the exchange rate risk control is a system engineering,should be should not be confined to the specific control method,should also include the design of the corporate governance level.So,in this paper,from three big level,from big to small of SINOHYDRO BUREAU 14 CO.LTD exchange rate risk control system are proposed,respectively on organization structure,management,and concrete control methods.Finally,this paper argues that,although the exchange rate risk control for the company has many a little bit,such as,can reduce the company's future cash flow volatility,strengthen its pricing power,and competitive.However,the negative impact of exchange rate risk control is also must be caused take seriously,after all,need professional team to operate foreign exchange risk control,especially when using the derivative financial product hedging,if hold bad prone to causing serious consequences,and in the open market to exchange rate risk hedge easy to reveal that the company's operating performance,is not conducive to protection of business secrets.The pros and cons of the above are all in the international engineering contracting business need to weigh in the process of exchange rate risk control.More time,need to stand in a macro perspective,comprehensive considering the gain and loss,eventually achieve the goal of enterprise economic profit maximization.