Research On Financial Risk Management Of China Merchants Shekou

Witnessing a rapid economic growth and the increase of people’s demand for housing conditions,the real estate industry has already become an important pillar industry in China.The crisis of the real estate enterprises not only affects the development of the enterprises themselves,but also has an adverse impact on other enterprises closely related to the real estate enterprises and even on the operation of the state economy.For the past few years,the central government has always adhered to the principle of "no speculation in housing",and increased the macroeconomic regulation of the real estate industry,thereby promoting the stable and healthy development of the real estate industry.In recent years,the frequent occurrence of real estate enterprises thunder events,the cumulative risks of the real estate industry gradually exposed.Housing enterprises have encountered problems such as financing difficulties,insufficient cash flow.The real estate enterprises themselves have the features of a great deal of investment,long development cycles and strong policy orientation,and so on,and are also easy to generate financial risks.As a consequence,studying the financial risks of real estate enterprises and strengthening the management of the financial risks of real estate enterprises is of great significance to promote the further development of our real estate enterprises and maintain the healthy growth of our economy.Taking China Merchants Shekou as an example,this paper manages the financial risk of China Merchants Shekou through the framework of financial risk identificationfinancial risk evaluation--financial risk prevention.Firstly,it summarizes the connotation of financial risk,the identification and prevention measures of financial risks,the reasons for financial risks,and the evaluation methods of financial risks.It defines the concepts of financial risk,financing risk,investment risk,operation risk and growth risk,and introduces the theoretical foundations such as MM theory.Then it introduces the current situation of Merchants Shekou and identifies the financial risks of Merchants Shekou from four aspects:financing risk,investment risk,operation risk and growth risk.Then by establishing entropy weight TOPSIS model and selecting 15 indicators to evaluate the financial risk of China Merchants Shekou.The financial risks identified are analyzed,and the relevant conclusions are drawn:(1)The financial risk of China Merchants Shekou was the highest in 2021 and the lowest in 2016.(2)From 2016 to 2021,the risk factors affecting the financial risk of China Merchants Shekou from large to small are respectively operation risk,growth risk,financing risk and investment risk.From 2016 to 2021,China Merchants Shekou ranked 9th,8th,18th,10th,17th and 21st among 34 real estate enterprises.(3)In order to reduce the financial risk of China Merchants Shekou,the enterprise should strengthen fund management,establish liquidity management mechanism,expand financing channels,optimize capital structure,control enterprise costs,cultivate new profit growth points,combine with the market environment,improve investment efficiency,perfct the internal control management system of the enterprise,strengthen accounts receivable management,establish financial risk warning mechanism,improve product running speed,strengthen enterprise brand competitiveness,and actively expand the market.