Research On Liquidity Risk Management Of Gold And J Ewelry Enterprises Under The Background Of Financing Crunch

With the progress of consumption upgrade and industry reshuffle and transformation,the private gold jewelry enterprises without significant advantages in brand and innovation,represented by*ST Qiulin and*ST Gangtai,pursued inefficient and blinkered development in 2015 and 2016.Not valuing brand cultivation and R&D innovation,they were wild about M&A and expansion and buying brands and seizing the market.The homogeneous competition and severe price wars among them led to inventory overstock,soaring accounts receivable,unreasonable occupation of working capital and increasingly high financial costs,and accumulating liquidity risks.Since the implementation of“Strict Financial Regulation" and "Deleveraging" in 2017,the enterprises,represented by*ST Gangtai,*ST Qiulin,Dongfangjinyu,and Jinzhoucihang in the industry,have experienced the events that debts could not be paid normally,such as bond default or non-standard overdue debt,and many enterprises issuing a situation in which there is obvious reduction in performance,which all reflect that the industry is under great pressure on profitability and capital,and facing signs of rising liquidity risk level.Maintain a stable and reasonable level of liquidity risks of an enterprise is a prerequisite for its normal operation,sound development and long-term survival.So liquidity risk management of an enterprise is a guarantee for its sustainable development.Improper handling of problems in extreme cases can easily give rise to a bankruptcy crisis because liquidity risks have complex causes and a devastating impact.From the point of the entire industry,liquidity risks triggered by multiple factors have become increasingly prominent.Failure to control the liquidity risks at a reasonable level will not only cannot ensure the stable operation of single enterprises,but also probably exacerbate problems in the development of the industry.Liquidity risk management,whether it is based on the macro perspective to think about the management mechanism,or based on the micro perspective to identify,measure and monitor the liquidity risks,all need the co-participation of the governmental agencies,the industry and enterprises to establish and improve a set of mechanisms for liquidity risk management.This paper focus on the following aspects.The general characteristics of gold jewelry enterprises in the current context,the liquidity risks reflected in the industry as a whole,the current status of liquidity risks management in the industry as a whole,the causes of liquidity risks in specific enterprises,the problems of specific enterprises on liquidity risk management,the conduct in which gold jewelry enterprises should do on liquidity risk management,the measures that the enterprises should take when they improve liquidity risk management,and the support which industry authorities and self-regulatory associations should give to the transformation and development of gold jewelry enterprises.To find answers to the above-mentioned questions,this paper selects*ST Qiulin whose bonds were defaulted and have not been cashed since 2018 as the research object to analyze the embodiment and management of its liquidity risks and to explore the causes of liquidity crisis and its existing problems in liquidity risk management.It supplements the existing research of the industry on the one hand;and provides ideas and references for other enterprises facing liquidity dilemma through its liquidity risk management analysis on the other hand.