On the Financial Risks and Countermeasures of Iron and Steel Enterprises in China

Abstract

Iron and steel industry, which acts as an important backbone industry of our country, impacts on economic development in our country directly. However, in the past years, the iron and steel enterprises in our country were facing unprecedented challenges, almost all the iron and steel enterprises were losses as well. In such a tough environment, financial risks of them should be solved urgently. The risks resulted in much prominent financial risk and management issues, such as irrational structures of capital, serious shortage of circulating fund, inefficient inventory management, as well as irrational investment pattern and so forth. These mentioned financial risks problems greatly influenced and restricted the development of our enterprises. The financial risks of the iron and steel enterprises existed in our country were attempted to analyze in this manuscript. Consequently, the reasons for the financial risks were found out and the relevant countermeasures were put forward.