Four Major Mistakes In State-Owned Enterprise Financing

Misunderstanding 1: "safety first" becomes "the only safety".

The SASAC has been very strict in supervising the financial affairs of state-owned enterprises, mainly controlling its investment in the two tier market. "The relevant documents clearly stipulate that enterprises need to go to the SASAC for approval when the level of equity investment is higher than 5% in the two tier market, and the need for less than 5% is reported to the SASAC."

Hou Rubo, deputy general manager of Jinjiang International Group Finance Co., Ltd., told reporters.

At the same time, the high risk and uncontrollable projects such as trust and real estate do not advocate the entry of enterprises.

One way of restricting orders has an impact on the financial management of state-owned enterprises. In practice, "safety first" often becomes "safe only".

"Through banks to buy products such as financial management has become the most common and most reassuring way of managing money, though the rate of return is not necessarily high."

Lv Yong, chief financial officer of Shanghai Bailian Group, said.

Many of the financial power of state-owned enterprises are generally keen to buy bonds in the interbank bond market.

It is very rare to participate in the stock market for investment purpose. Only when it is related to the assets operation, merger and consolidation behavior of enterprises, will they participate in the approval process.

Although some trust products or real estate projects yield more than 8%-10%, but because of the high risk, state-owned enterprises are rarely involved.

For a long time, the financial market of state-owned enterprises is not active.

In fact, the board of directors also has restrictions on financial management.

The board of directors of the Bailian Group clearly stipulates that no one can spend more than 3 billion yuan a year on financial management.

On the one hand, not all state-owned enterprises have surplus funds to do financial management. On the other hand, industrial enterprises with surplus funds are also more invested in reinvestment. Even if they have financial behavior, they are prudently seeking the safest.

Besides, the financial returns of most state-owned enterprises are not directly linked to the performance of managers, and lack of corresponding incentive mechanisms. Therefore, managers do not have the initiative to do financial operations.

The direct consequence of excessive financial security is inaction or less action.

As long as you don't make mistakes, you can always sit back and relax, and if you take risks, try new ways of managing money.

Therefore, even if the yield is very low, the financial products or ways with low risk coefficient will be sought after by state-owned enterprises.

Wu Lei, general manager of Galaxy fund marketing department, said.

Misunderstanding two: bank financing is safe. At present, almost all state-owned enterprises rely on the bank platform for financial management. "A large part of the financial products of banks are linked to national strategic entities, such as real estate, gold, water conservancy projects and so on. The risk is relatively small, which is the main reason why state-owned enterprises are willing to buy bank financial products."

Zhang Hongbo, chief strategist of Wells Fargo fund, said to him.

"Plus the bank itself has huge capital, even if a product is lost, it can also compensate us from other aspects."

Lv Yong said frankly.

But in fact, bank financing products may not be all dry and waterlogging.

The existing bank financial products can be roughly divided into several different situations: first, bank financing products, but not necessarily low risks; second, bank financing products, but not necessarily guaranteed capital and income protection.

Third, it is not a real bank financial product, it may be a product that banks help sell.

At the same time, we must not lose sight of the fact that there are still some shortcomings in the understanding and bargaining of state-owned banks for financial products.

First, risk assessment is vague.

The risk of certain financial products is high or low, and whether there is hidden risk. For state-owned enterprises, there is no complete and scientific appraisal system.

"Some bank customer service personnel in order to pursue performance, often only introduce the advantages of the product to the enterprise, but avoid the risk."

Hou Rubo pointed out that the bank's oral promise of guaranteed capital and guaranteed revenue does not have legal effect.

Only when the principal contract between an enterprise and a bank is explicitly written out of capital preservation or capital preservation, will it have a legal effect.

"All verbal promises or personal commitments are just a drawer type paction, and enterprises can not easily believe it."

Second, the lack of bargaining power with banks.

State owned enterprises do not have the conditions and capabilities to negotiate bargaining for bank deposits such as negotiable deposits.

A state-owned enterprise staff told reporters: "the company originally chose a bank to recommend the agreement deposit, the interest is relatively low, and the contract is signed for several years.

When another international company chose the same product, it negotiated with the bank and drew up a higher interest rate. The interest gap between them reached hundreds of thousands of yuan.

Such losses should be avoided. "

Myth three: fund management risks must be high. As early as April 2008, the China Shipping fund successfully signed a large number of state-owned enterprises, and opened a prelude to the financial management of fund accounts. The amount of assets entrusted to them was as high as 1 billion yuan.

But in recent years, fund companies are not optimistic about helping state-owned enterprises manage their finances.

"We are

To do the most, still stay in the value of the enterprise annuity.

Zhang Hongbo said.

By contrast, fund accounts can provide more financial services for state-owned enterprises.

"For the risk of fund management, the sense of state owned enterprises has not changed."

Wu Lei said.

In fact, financial management does not necessarily mean high risk.

"If you choose funds for financing, if you buy fixed income products, the risks will be small. Basically, it is unlikely that losses will be made. SOEs can be considered."

Zhang Hongbo explained that fixed income products are more related to bonds, such as bond funds mainly invest in treasury bonds, financial bonds, corporate bonds, convertible bonds and so on, which is an important channel for their earnings.

In contrast, its

The revenue is significantly higher than the same period of bank financial products, such as closed-end bond funds, the general closure time is 3 years, the annual yield can reach 6%-7%.

"As long as enterprises pay attention to not buying up inflation and raising interest rates cycle, the risk is controllable."

Zhang Hongbo said.

Misunderstanding four: financial management does not require professional team financial management of state-owned enterprises to play an auxiliary role in supporting the implementation of enterprise strategy.

"Through financial management, we can get a better understanding of the current capital market and help enterprises make the right strategic decisions."

Lv Yong said, at this time, the professional requirements of the financial management team are very high.

At present, most state-owned enterprises' financial management is temporarily managed by the financial department. "It is precisely because of the lack of professional talents that the state-owned enterprises' cognition and risk analysis of financial products are insufficient."

Hou Rubo said.

At the same time, the financial sector is not fully aware of the cyclical characteristics of state-owned enterprises' financial management.

"The capital cycle of state-owned enterprises is contradictory to the optimal investment cycle of financial products."

Zhang Hongbo explained that under the condition of economic prosperity, state owned enterprises had plenty of capital, but most of the funds were invested in the expansion and reproduction, so that there was little room for financial management. When the economy was depressed, state owned enterprises were willing to invest their money in the financial market, and the financial management space increased. However, enterprises often faced the situation of shortage of funds.

Zhang Hongbo pointed out that

It is a very professional field, which requires professionals to understand the operation of capital, the industry and financial products of enterprises.

You can't do well without relying on a professional team.

However, at present, it is not realistic to require state-owned enterprises to establish financial management departments. "The establishment of a financial team requires at least 3-5 professional analytical researchers, and the cost of raising people and institutions is more than 1 billion yuan per year."

Zhang Hongbo said.

This is not a small expenditure, but after all, financial management is not the main business of state-owned enterprises, and is not suitable for investing large amounts of capital.

Moreover, the 3-5 member sector is also in a weak position in the huge state-owned enterprise structure.

"Taking into account the cost and income of state-owned enterprises, we can put them in the investment sector, and divide and cultivate financial management teams."

"Or it can also bind professional institutions through agreements, and use their strength to do financial management for enterprises."

Wu Leiru said.