A Study On The Strategy Of Equity Investment Of FAW Group

In recent years,China's automobile industry has undergone great changes.In the past,state-owned automobile groups,relying on state-owned background,traditional industrial model and restrictive threshold of the industry,had almost monopoly advantages in China's automobile industry.In today,especially in China towards a comprehensive "made in China 2025",a trade war with China continued backdrop,such as the survival and development of state-owned automobile group in the future there is more uncertainty,coupled with its own factors such as corporate governance and market operating system is not perfect,than in the emerging field of auto industry derivative private enterprises,foreign-funded enterprises,it is often difficult to seize the opportunity,missed opportunities,miss some of the items has a good development prospect,and used to form the same advantage in Internet + car backdrop to a certain extent,it became white elephants.Based on FAW group as an example,the study of FAW group company equity investment strategy,dig into state-owned large car industry group in how to choose the strategic investment and financial investment,facing changes in the global industrial development,transformation and upgrading of national manufacturing under the background of how to adjust the equity investment strategy,put forward reasonable Suggestions for China's automobile group equity investment and general steps of equity investment strategy.Based on the study of the equity investment status of FAW Group,this paper analyzes the problems existing in the equity investment of FAW Group from the current environment,including the unitary investment structure.Investment development is out of step with cash flow.Slow returns on investment.On the basis of the above analysis,this paper analyzes in detail the reasons for the problems existing in the current equity investment.The investment is limited to automobile manufacturing and technology,and the financing channel is narrow.Imperfect investment control and insufficient internal financing.In order to help FAW Group formulate equity investment strategy,this paper puts forward general steps,including the basis of strategy formulation,which should start from Made in China 2025,automobile industry investment management regulations and FAW Group strategic planning.The investment form of strategy formulation includes the investment form choice of strategic investment and financial investment;Target selection for strategy formulation,including diversified development of self-owned brands,transformation and upgrading of joint venture and cooperative brands,building new service growth poles and obtaining investment income through financial investment;The formulation of specific investment strategies includes strengthening cooperation with Volkswagen,Toyota and other traditional automobile groups,exploring cooperation with new automobile manufacturers,establishing a financial investment system with the core goal of obtaining investment income and deploying The Belt and Road to explore the main overseas markets.In order to help FAW Group formulate its equity investment strategy,this paper proposes the general steps of strategy formulation,which should be based on made in China 2025,automobile industry investment management regulations and FAW Group strategic planning.Choose diversified development of independent brands,transformation and upgrading of joint venture and cooperative brands,building new service growth poles and taking financial investment to obtain investment income as the main investment objectives.Distinguish different investment forms according to strategic investment and financial investment.The specific path includes strengthening cooperation with Volkswagen,Toyota and other traditional automobilegroups,exploring cooperation with new automobile manufacturers,establishing a financial investment system with the core goal of obtaining investment income,and deploying "One Belt and One Road" to explore major overseas markets.At the same time,in order to ensure the implementation,this paper also puts forward three Suggestions,including optimizing the capital structure,standardizing the investment management and improving the assessment and evaluation mechanism.