A Research On Foreign Exchange Risk Management Strategies Based On HN Aviation Company

With the deepening of international trade cooperation,the area of economic cooperation between China and other countries has gradually expanded.The volume of import and export trade has been rising year after year.More and more Chinese companies have gone abroad to participate in international trade.Foreign trade has become an important part of the enterprise.However,along with the globalization process,the international economic environment has become increasingly complex.The Brexit,the New Deal of Trump,and the European economy are still in a recovery period.The geopolitical environment such as the situation in the peninsula,the situation in the Middle East,and the situation in the Taiwan Strait have brought different influence on economic activities.With the acceleration of the internationalization of the renminbi,the two-way fluctuation of the renminbi exchange rate against the mainstream currencies has become a trend within a certain period of time,but abnormal fluctuations in the short-term have occurred from time to time,which has brought severe tests to foreign-related companies.On August 11,2015,the Central Bank announced the improvement of the renminbi price quoting mechanism.Subsequently,the renminbi exchange rate with the US dollar entered the depreciation range.By the end of 2016,the US dollar was equivalent to 6.945 yuan and the cumulative devaluation of the renminbi against the US dollar was 10.59%.Sudden exchange rate fluctuations have caused transnational corporations to sustain huge exchange losses,which has led to the importance of companies in foreign exchange risk management.China's foreign exchange risk management started relatively late.Although most companies have started to pay attention and conducted a certain degree of foreign exchange management,because of the inactive financial market and the attitude towards foreign exchange risk,they still tend to be passively managed.The risk management system needs to be strengthened from the risk prediction,identification,assessment,and avoidance,from the internal organizational structure and evaluation mechanism to the training of specialized personnel.This article focuses on the foreign exchange risk and foreign exchange risk management during the operation of HN Aviation Co.,Ltd.And use theoretical and case method analysis try to find out a suitable foreign exchange risk management system and specific implementation measures to help companies avoid and reduce exchange losses and improve the company's market competitiveness.At the same time,it has certain reference significance for other airlines' foreign risk management.First of all,the article defines the related concepts of foreign exchange risk,and analyzes the foreign exchange risk and foreign exchange risk management situation faced by HN Aviation Co.,Ltd.,including contract management risk,liability structure management risks,and fund management risk,company management strategy management risk based on operating hedging,and the use of derivatives based on financial hedging.At the same time,explained the experience of Lufthansa Airlines and Huawei's foreign exchange risk management,combined with the actual business situation of HN Aviation Co.,Ltd.,the article put forward specific recommendations for the company's future foreign exchange risk management.In terms of specific strategies,this paper proposes to strengthen financial strategies based on contract management,fund management,and liability management,market strategies based on corporate business strategies and company capacity,and financial strategies based on financial derivatives.At the implementation level of the safeguard policy,it is proposed that a complete internal management system should be established,including organizational structure,internal control system,early warning mechanism,and evaluation mechanism,to improve the level of attention of the company's management and personnel training to ensure the effective implementation of the foreign exchange risk management strategy.Finally,a brief conclusion of this article is summarized.