Green Credit, Financial Flexibility And Enterprise Transformation And Upgrading

Since the 19 th National Congress of the Communist Party of China was held,the development of green finance has become an inevitable requirement for the development of the times.As an important force to promote green development,green credit combines credit policy with national macro industrial strategy,which provides effective conditions for domestic enterprises to promote transformation and upgrading,so as to achieve the macro goal of developing the real economy and building a modern economic system.And with the rapid development of China's economy,the continuous change of economic environment has brought great uncertainty to the enterprise.And the concept of financial flexibility has become the focus of enterprise sustainable operation.Since the proposal of supply side reform in 2015,many enterprises are seeking transformation and upgrading.In this process,many factors such as credit policy,financial flexibility,investment and financing decisions have had a certain impact.This paper attempts to explore the external objective changes of green credit policy and the impact of financial flexibility on the transformation and upgrading of enterprises by analyzing the typical successful transformation and upgrading — HBIS,one of the heavy polluting enterprises,focusing on the green credit policy and financial flexibility.Firstly,this paper first analyzes the macro environment of HBIS and the implementation of credit policy.Secondly,it analyzes the internal transformation of HBIS,especially the financial flexibility.Thirdly,it analyzes the financial situation and performance of HBIS,as well as the concrete embodiment of the effect of transformation and upgrading.Finally,based on the macro background of green credit policy,this paper establishes the logical relationship between financial flexibility reserve and transformation and upgrading of HBIS.Through the case study of HBIS,it is found that:(1)as the embodiment of national macro-control,the impact of green credit policy on enterprises mainly lies in financing constraints.The first is the source of funds.Green credit policy is targeted.Environmental friendly enterprises or enterprises carrying out green transformation can obtain "policy guarantee".The reduction of financing constraints ensures the financing sources of enterprises and enriches the financing sources.The second is the orientation of capital.Banks and other financial institutions implement the credit policy with high interest rate as the core for "two high and one surplus" enterprises,which urges enterprises to compress excess capacity.Green credit can reduce the financing cost of green enterprises and guide technology upgrading to further de capacity.(2)By maintaining a certain degree of financial flexibility,enterprises will have a good performance in cash holding,financing level and so on.This can provide space for investment behavior,especially R & D expenditure(research and development expenditure).(3)The combination of credit policy and financial flexibility can improve enterprise performance to a certain extent.(4)There are many ways to transform and upgrade enterprises,including mergers and acquisitions,adjustment of business structure,extension of industrial chain,establishment of technical support,etc.According to the conclusion,this paper gives several suggestions: firstly,for the enterprise itself,it should pay attention to the financing constraints of credit policy,grasp the favorable trend of credit policy on the basis of strengthening capital management and control,ensuring the safety of capital chain.Secondly,for steel enterprises,which are mature and overcapacity,there is a problem of insufficient demand.We should make full use of the favorable conditions of credit policy to support mergers and acquisitions among enterprises,expand overseas markets and absorb domestic high-quality assets,so as to reduce production capacity effectively.Thirdly,financial flexibility has a positive effect on enterprise performance,so enterprise should pay attention to reserve financial flexibility,creating development space for the future development of enterprises.