Analysis On The Application Of Financial Early Warning System To Jiangxi Provincial State-owned Enterprises’ Assets Management Company

The reform of state-owned enterprises in China began in the late 1970 s and experienced arduous and tortuous exploration.The third plenary session of the 18 th CPC Central Committee once again sounded the clarion call for a new round of state-owned enterprises reform.On August 24 th,2015,the CPC Central Committee and the State Council published The Guiding Opinions on Deepening the Reform of State-owned Enterprises,which put forward the goals and measures of the reform from the aspects of promoting the reform by classification,developing mixed-ownership economy and improving the management system of state-owned assets etc.One of the key measures to further deepen the reform of state-owned enterprises is the establishment and governance of state-owned capital investment and operation companies,and Jiangxi Provincial State-owned Enterprise Assets Management Company,which carries distinct characteristics of state-owned capital investment and operation companies,is the product of the pilot project of such kind of companies.In recent years,with the rapid development of the company,its asset scale and strength has been greatly enhanced,but what can not be ignored is the formation and accumulation of a large number of financial risks in the process of its reorganization and formation,the centralization of assets,the operation management and the display of platform functions.Via adopting the method of combining literature research and case study and combing the existing financial risks early warning theory and its practice research,this thesis expounds the definition,characteristics,function and process of financial risks early warning,and introduces its common models and theoretical basis.It analyzes the financial risks faced by Jiangxi Provincial State-owned Enterprise Assets Management Company and constructs the company’s financial risks early warning system adaptable to the specific requirements of state-owned capital investment and operation companies through applying single variable early warning model and sample benchmarking on the basis of studying and drawing on the research results of many scholars at home and abroad.This financial risks early-warning system has creatively established the sample database of state-owned capital investment and operation companies.It uses mathematical statistics technology to classify and screen the financial early warning index scientifically,establishes the early warning interval of financial early warning index by using the data of the benchmarking sample database as the reference frame to form a relatively perfect financial risk early warning procedure.Based on the above financial risks early warning system,this thesis makes an empirical analysis of Jiangxi Provincial State-owned Enterprise Assets Management Company to draw the early warning conclusions finally,and puts forward relative proposals to state-owned capital investment operation companies to carry out the financial risks early warning work.The intrinsic motivation of establishing financial risks early warning system of Jiangxi Provincial State-owned Enterprise Assets Management Company is the inevitable requirements of its own operation and development,the external motivation is the objective requirements of state-owned assets maintenance and increment put forward by the investor,and it is in line with the era request of state-owned enterprises reform.The single variable early warning model,which is mature and reliable with easily obtained sample data,simple and convenient calculation process and risk source easy to be found,meets the need of the company to find risk points as well as early warning.Through the actual data verification,the design target is finally reached.The establishment of financial risks early warning system of Jiangxi Provincial State-owned Enterprise Assets Management Company is an active exploration and beneficial attempt to guard against financial risks of state-owned capital investment and operation companies to carry out financial risks early warning work.It is hoped that more and more similar companies will be provided with ways and means to identify financial risks,guard against financial risks,and build a financial risks early warning system which can improve their ability to identify and deal with financial risks to maintain and increase the value of state-owned capital.