Research On XF Group Centralized Fund Management Modes

Fund is compared as the "blood" in the healthy operation of enterprise group.Centralized fund management can not only improve the operation efficiency of enterprise group,increase the liquidity of funds,but also improve the efficiency of fund utilization.Due to the extensive business,long industrial chain and complex organizational structure in large enterprise groups,centralized fund management has many advantages such as in improving the management level of enterprise groups,increasing the funds utilization rate,reducing the financial management costs,and ensuring the healthy operation of cash flow,as well as controlling the operation risk in subsidiaries.XF group is a new-founded but already of a certain scale enterprise group in a coastal city of China.The main business involves many fields,such as real estate,finance,agriculture,tourism and entertainment.The group paid great attention on the practice innovation of centralized management of funds.In the establishment early period,XF group adopted the unified state control over income and expenditure as the main method,supplemented by disburse reserve.However,with the rapid expansion of the group business,the model had become more and more difficult to meet the requirement of the high efficiency and healthy funds circulation under the new situation.Therefore the group decided to apply the settlement center method,also supplemented by disburse reserve,after careful research.Thus the group development "bottleneck had been eliminated to a certain extent.However,there are still some problems that are reducing the individual profits and the overall interests of the group,restricting the business expansion and strategic development of the group,such as inadequate fund management system,low efficiency of capital transfer,high financing costs and insufficient ability of risk management.On the basis of collecting and summarizing relevant domestic and abroad literatures,the characteristics,background and practical effects of XF group fund management modes in various periods are analyzed in this paper.And meanwhile the progressiveness and shortcomings of the current fund management mode are discussed,which could provide importance evidences for the innovation of the fund centralized management method.The main conclusions are as follows:(1)the main centralized management method of unified state control over income and expenditure mode during the establishment early period had consolidated the supervision for the subordinate companies.(2)Since the group adopted the settlement center mode as main method in 2012,with the benefits of regional economy and policies,the subordinate companies started to burst out new vitality.The group business fields expanded very rapidly and achieved great improvement in the overall performance.(3)A series of centralized fund management improving measures such as perfecting the management regulations,adopting information management system,improving the management ability of flow funds and budget management system,and perfecting the risk control system are put forward.(4)The centralized fund management mode based on financial company,as a more advanced and more decentralized mode,can further stimulate the vitality of the subordinate companies and provide new growth points for the promotion and expansion of XF group.