Research On Financial Support For The Transformation And Upgrading Of Guangxi’s Steel Industry

Steel industry is an important link in industrial production and plays an important role in China’s economic development.After many years of continuous development,China’s steel output has increased massively,and China’s crude steel output has been the world’s largest for many years.The domestic steel industry has seen overcapacity in recent years,hit by the global pandemic and lower demand downstream.With the further strengthening of the dual carbon policy,China’s steel industry will enter a period of double production and capacity control during the Fourteenth Five-Year Plan.The steel industry will face a difficult policy environment in the future.To survive and develop,it must be transformed and upgraded.The role of financial support is crucial.Based on the above background,this paper takes Liuzhou Iron and Steel Group Co.,Ltd.,the leading steelmaker in Guangxi,as an example,to make an in-depth study of its current situation and predicament,and to explore the shortcomings of financial support for the development of Guangxi Iron and Steel industry.Firstly,this paper analyzes the domestic and foreign steel industry,Guangxi steel industry and financial development.Secondly,the green development of Liuzhou Iron and Steel Group is evaluated by using the mutation series model.Thirdly,the current situation and problems of financial support for Guangxi steel industry are analyzed in detail.Fourth,the paper takes Liuzhou Iron and Steel Group as an example to analyze its development predicament and the problems in the financial support process.Finally,the development path and financial support of Guangxi Iron and Steel Industry and Liuzhou Iron and Steel Group are explored based on the experience of domestic steel enterprises.Through the research,it is found that there are some problems in the financial support of Guangxi steel industry: the financial resources allocation to steel enterprises is insufficient and uneven,the direct financing scale is small,and the financial products and services are different from the demands of the industry transformation and upgrading.The problems of financial support for liuzhou steel group co.,ltd.include: high debt exacerbates the risk of debt service of enterprises,complex guarantee circle and financing mode of enterprises,and the development level of financial institutions does not meet the needs of enterprise transformation and upgrading.To this end,the following suggestions are put forward: the enterprises themselves should speed up the merger reorganization to improve their own business situation,adjust the financing structure to reduce the risk of debt service;Financial institutions can classify the credit of steel enterprises,improve existing products,strengthen product and service innovation,and explore the support of financial technology to business.The government should increase policy guidance,improve the system of laws and regulations,increase the concentration of industries,establish information disclosure platforms,expand the size of capital markets and increase financing channels.