Shanghai Steel Trade Finance Crisis And The Countermeasure Research

Shanghai steel trade financing began in the early 1990 s,most of the practitioners in the industry from Zhouning county,Ningde city,Fujian province,because the employees do not have a high level of culture,legal consciousness and credit consciousness is weak,coupled with the lack of market regulation,take a right from the start with steel trade deals,as well as multiple operation is not standard,quite a number of steel trade in steel trade financing for a target,but the financing is part of being used for any other purposes,diversified operation or used in the high consumption,super financing phenomenon is serious,guarantee,coinsurance,mutual insurance and self-administration of steel trade,business financing guarantee company and give the market credit inquiry on the illusion,glad these risks be masked in terms of economy,since the second half of 2011,with the macro economic situation changes,combined with China's iron and steel overcapacity,downstream of the infrastructure construction,real estate,shipbuilding,automobile and mechanical and electrical industries such as falling demand for steel,steel prices fell sharply,steel trade industry overall profit fell significantly,as things are growing,steel trade enterprise appear large,centralized credit and default,many steel trading business bankruptcy run,even be jointly and severally,shock and impact,the entire steel trade industry is the incident was the industry known as the "steel trade crisis".Steel trade"domino effect" of the crisis,the disturbed the market order,bring to the development of social economy instability.Paper to Zhouning's steel trading business in Shanghai business case as a breakthrough point,using literature method,element analysis and case comparison method,combining the theory of public management related in-depth analysis the root cause of the crisis,from the perspective of public management to explore the current response measures,steel trade and commercial banks and other related enterprises through the steel trade cold winter has some positive significance.