Research On The Causes And Countermeasures Of The Financial Crisis Of The Huge Group

With the all-round development of China’s market economy and capital market,private enterprises play an increasingly important role in the social economy.Since 2012,China’s economic development has entered a new normal,the economic growth rate has gradually slowed down,and the financial market has been unstable,It is in the process of industrial restructuring and capacity upgrading.Affected by internal and external factors such as external environment,financial management and corporate governance,private enterprises that have fallen into financial crisis in recent years have been increasing.The occurrence of financial crisis issues not only seriously affects the normal operation of enterprises,but also damages the economic interests of employees,major shareholders and creditors,and adversely affects the stability of related industries and capital markets.Therefore,financial crisis research has become a common concern of scholars and practitioners at home and abroad,This paper takes the huge group that has suffered losses as the research object,considers the risks brought by the changes of internal and external environment,discusses the transmission mechanism of risk,reviews the development history of the huge group,describes the process of financial crisis in the development of the industry,and sorts out the process.Its operational and financial status before and after the financial crisis.By comparing with Guanghui Auto,it was found that before the financial crisis,the huge group experienced deterioration in terms of profitability,solvency,operational capability and development capability.Therefore,the causes of the financial crisis are further analyzed,and corresponding countermeasures are proposed to achieve sustainable development.