The Study On Financial Risk Management Of Government Investment Funds

In recent years,China has gradually reduced the use of the traditional subsidy model of " scatter Pepper ",instead,use modern financial approach to promote the construction of government funds to support small-sized high-tech enterprises,promote industrial transformation and upgrading,and promote local economic development.In the 14 th five-year plan,it is proposed that "play the leveraging role of government investment,stimulate the vitality of private investment,and form a market-oriented endogenous growth mechanism of investment".The operation and management of government investment funds integrates government guidance and market operation,and guides social capital to help industrial transformation and upgrading.As the innovation and exploration of government investment and financing methods,government investment funds have increasingly become the focus of local governments and market institutions,and are widely used in the investment and financing activities of Chinese governments at all levels.As a new type of government investment fund jointly funded by local finance and state-owned enterprise groups,this paper uses the case study method to figure out the financial risk of G investment fund,aims to identify the financial risks in the operation process of G fund,analyze the specific causes of financial risks in each stage of G fund operation,and combine the existing financial risk control system of G fund,find the drawbacks existing in the financial risk control of G fund in view of different impacting factors,and figure out suggestions to enhance the risk control of fund from all the investment procedure.The research conclusion shows that,first,G investment fund has great financial risks in fund operation,including liquidity risk,income risk and refinancing risk.Secondly,the financial risk of the management company could be included into internal and external factors.The internal influencing factors mainly include the mismatching degree of the term when the fund raising and investing,the relative concentration of the investment industry and region,the demand of the management for short-term performance indicators,post-investment management and exit route and time.The external factors mainly include macro-environment and information asymmetry with the invested company.Thirdly,analyzes the current financial risk control system and specific measures of G investment fund,which mainly including the establishment of project initiation and investment decision-making committee for decision-making,and the establishment of relatively strict approval and decision-making process in the process of project investment and exit,which shall be specially responsible by the relevant responsible person.In terms of post-investment management,project management is carried out through post-investment supervision,daily follow-up and regular review to prevent and control financial risks.Fourthly,according to the existing risk control system,this paper analyzes the problems existing in the financial risk management of G fund,including the failure to establish a full-time post investment management team,the lack of financial management functions,the lack of quantitative risk assessment system and low degree of digitization.In the investment stage,it is necessary to further optimize the company’s internal control system and system,and do a good job in risk identification and evaluation of investment projects.In terms of post-investment management,we need to focus on the daily supervision and management of the invested enterprises,optimize the post investment management mode,strengthen the company’s ability to provide post investment value-added services,and enable the company’s risk control through digital technology.For the exit stage,we should strengthen the cooperation with professional institutions in the industry and finally choose an appropriate and reasonable exit way to protect our own interests.The conclusion of the paper could provide countermeasures for G investment fund to improve and revise the financial risk control measures,and can also be a reference for other government investment fund in their development and operation.