Impacts and Adaptation: From the Points of View of Financial Management System in Enterprise Groups

The integration of international economy dominated wi th the financial market leads to fierce competition. This requires firms impleme nt modern corporate financial mechanism. From the view of the current situation of financial management in China, we demonstrates the differences in financial m anagement between Chinese enterprises and international companies by describing detailed case studies of typical large enterprises in China. To transform the enterprise management mechanism, the enterprise financial m echanism must be transformed accordingly. The basic ideas for its transformation and establishment include: 1. Changing the managerial ideology, that is, completing the ideological chan ge from the management of goods to the management of capital; 2. Establishing a scientific organizational mechanism for financial managemen t; 3. Establishing a mechanism for scientific management, supervision and assess ment; 4. Training high-level financial management personnel with modern management knowledge; 5. Dividing promotion center, distribution center, cost center and profit cen ter in financial division. In view of the above basic ideas and basic principles for the transformation and establishment of enterprise financial mechanism, we found that: the basic conte nt that needs transformation in the theory of China’s traditional enterprise fin ancial mechanism should include the content of finance main body, the content of financial objectives, the content of financial organizational structure and the content of environment for financial management. At the same time the following theories should be introduced, particularly the theories of capital time value, of risk in finance management and risk management, of the capital cost and capi tal structure, so as to establish a basic theoretical framework for the modern e nterprise financial mechanism. Based on the analyses, this paper discusses the impacts of economic globaliz ation to Chinese large enterprises and their financial management systems. From the current situation of Chinese companies’ financial management, this paper dem onstrates the adaptations to the differences in financial management of Chin ese enterprises with case study.

From a Workshop to an Enterprise Group——Notes on Wenzhou Zhengtai Group Co.

The Wenzhou Liushi Industrial Zone is a well-known electrical appliances area which borders on Huanghua Harbour. The No.104 national highway cuts through the zone which is 40 kilometres away from Wenzhou Airport. The headquarters of Wenzhou Zhengtai Group Co., a unique white and blue building, stands out from many other buildings in the zone and attracts attention.

China Commercial Group and China Commercial Enterprise Group Corp.

The China Commercial Group(CCG) isan economic complex,linked by nationalassets,with commerce as its mainbusiness:It is a diversified operation composedof multiple legal persons;and it is a multi-level,multi-functional,trans-regional,transnational and trans-industrial enterprisegroup.