Research On HNA Group’s Financial Crisis

With the rapid rise of its economy,China has become the second largest economy in the world.More and more big Chinese enterprises start to carry out overseas M&A,while the comprehensive strength of China jumps.Initially,these commercial activities are acquiesced by the government.However the policy direction began to change in 2007.Those enterprises which finish large quantity of buyout began to face unprecedented financial risk.With the help of high leverage expansion model,HNA Group,originating from a regional airline in Hainan Province,has rapidly developed into a multinational enterprises with wide business distribution.Especially in recent years,HNA Group has finished a large number of buyout overseas.Leverage has its two sides.With the slowdown of China’s economic growth in recent years,the disadvantages of HNA Group’s rapid expansion which relies on high leverage are increasingly revealed.The HNA Group,which is over indebted,has to face the risk of capital chain breaking.As is known to us,the civil aviaton industry is closely related to the people’s daily life at home.If HNA Group,which is currently in financial crisis,is ignored,it will affect the civil aviation network of the whole country.In addition,HNA Group has a lot of listed companies and there are many intrested parties in the capital market.In the financial crisis is handled improperly,it is likely to affect the government’s tax revenue and damage the interests of major investment institutions and small and small and medium investors.To sum up,it is of great theoretical and practical significance to study the financial crisis of HNA group.This paper take the financial crisis of HNA Group which started in 2017 as the research object.The main content is divided into four parts.The first part is an overview of the case.The second part is the cause analysis and financial early-warning.The third part,economic consequences.The fourth part is the case revelation.