Research On Financial Fraud Of HUA XIN Company

After the reform and opening up policy had been implemented,the state-owned enterprises of China have gone through several transformations in terms of building up the modern enterprise system.Under the conditions of the socialist market economy,all the state-owned enterprises are playing positive roles in its own industries and fields.With the rapid development of the new time state economic power,in order to guarantee the healthy market development,it has been crucial to make national stratedies on how to deepen the state-owned enterprises reforms,to adjust the industry structure,and to stimulate the market vitality.With the stable development of Chinese economy,the structure transition of the traditional labor intensive economy to technology intensive economy has met basic conditions.A new round of economic structure transformation strategy policies has been carried out and fully implemented.The state-owned enterprises,as the primary part of the national economy,has been playing a crucial role in the national economic structure transformation.No matter it is state-owned enterprise or private enterprises,financial fraud happens frequently,and it is on an increasing trend.Huaxin Company\Group,as a large state-owned conglomerate,has rubber businesses,rubber processing,livestock products,real estate as its core industries.The Huaxin Group also has Oblique load tires,all steel engineering giant tires,half steel radial tires,together with forty other types of leading products.The business scale has covered rubber,building materials,metal and chemical products,real estate,automobile leasing and renting,contracted projects at home and abroad,traveling,the selling of drinking water,animal and plant breeding,e-commerce,guarantee agency,financial services etc,so thefinancial fraud problems the group are facing are very representative.This essay takes Huaxin Company as the case and example to research and analyze the ways that financial fraud happens.By using the financial fraud triangle theory,the essay concludes that the pressure factor,opportunity factors,and self-rationalization factor.On the basis of the case,I have explored some feasible suggestions on avoiding financial fraud.By the research and analysis of this essay,I hope it can not only let Huaxin Group know the root that caused the problems they have,which is very meaningful,but also let businesses of the same fields and other state-owned enterprises take the lesson.At the same time,by analyzing the case,it can give relative support for the investors to make economic strategies,and to boost the management level of the state-owned property supervisors and operators.By the case of the Huaxin Group,it serves certain reference functions for discerning,analyzing,and researching the financial fraud that may happen in the state-owned enterprises as well as other businesses,so as to supervise and manage the state-owned enterprises more effectively,and to avoid the losses of the national assets and profits.