Discussion On The Centralized Management Of Funds In HT Group Finance Company

Financial management is the center of Modern management enterprise,and fund management is the center of financial management.In recent years,more and more China's enterprise groups Implement the "big companies,large corporations" strategy for the international market.the Group's centralized cash management become more and more attention.Establish a finance company is a good choice for imputation funds,fund management and communication.After nearly 30 years of development,China's finance company has made a very high achievement.But most of the financial companies are still unable to get rid of the embarrassment of the internal management department.Financial company as an independent legal entity,the financial institutions are still in the business scope is not enough,the external financing capacity is limited,the risk management system and the lack of awareness and other issues.At the same time,the external financial reform is hot in the process,the influx of foreign capital,interest rate market,the reduction of interest rate is the new challenges for the financial company by external environment.This paper is based on the HT group finance company,and offer the proposal for its problems.HT group finance company was established in 2008.It is approved by the China Banking Regulatory Commission,and establish by the HT group and other 16 member.Before the establishment of the financial company,because the difference of the member units of the financial and operational that the group appeared the phenomenon of "double high loan".The cost of financing and expenditure has also been the highest in.At the same time,there are a lot of insider trading between the members of the group of units,it produce a lot of internal capital settlement business.In that time,the funds transfer funds exist to account is not timely,but also need to pay more fee.because of the funds in the group's outflow,and a large number of funds in transit,that make the seriously affect for efficiency of the funds.Since the establishment of the company's financial,members of the unit by financial companies fund transfer speed is greatly improved and does not require to pay fees and effectively improve the group velocity of money.Through the centralized management of funds,financial companies adjust the allocation of funds and inventory of idle funds in the group.the members of the unit has finance more simple.Compared to bank loans,it eliminates a large number of cumbersome procedures and financing cost.Since the financial company was established,the company has accumulated savings of foreign loan interest expenses nearly 890 million.HT group finance company has brought great benefits for the HT group's capital management.But after more than seven years of operation,the development of the financial company has entered a bottleneck stage.In recent years,due to the regulatory for listing Corporation's capital management is more and more severe by authorities,which led to the HT group finance companies centralized management of the fund is increasingly difficult from the listing of the member.At the same time with the development of economic globalization,the entry of foreign banks will have a huge impact on the local financial industry,which will bring new threats to HT group finance company.HT group finance company is not only to maintain the group of public interests,but also to ensure that its economic benefits.If it not actively improve their own shortcomings for face external challenge.there will be become a department of internal management,and not a value of the company.This paper is based on the bottlenecks in development of the financial company.And through the case of HT group finance company to offer some personal comments and suggestions.This paper start from the theoretical basis,introduces the basic concepts and theoretical basis of the centralized management of financial capital,and analyzes the current situation of the centralized management of funds with the combination of Chinese and foreign literatures.At the same time,this paper expounds the characteristics and principles of the centralized management of funds,and defines the functions of the modern finance companies in the enterprise group.