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Academic Journal of Agricultural Sciences, 2022, 3(1); doi: 10.38007/AJAS.2022.030102.

Financing Risk Based on the Direction of Soybean Trade

Author(s)

James Yong Liao 

Corresponding Author:
James Yong Liao
Affiliation(s)

Philippine Christian University, Philippine

Abstract

Nowadays, although China is a large agricultural country, due to the foreign policy, the import tariff of soybean has been reduced. As a result, the low price soybean abroad has a strong impact on the domestic market, resulting in the rapid growth of China's soybean import, which stimulates the growth of the number of soybean trade financing business. Soybean financing, like crude oil financing, belongs to commodity financing. But now the soybean import is increasing gradually, which leads to the acceleration of structural transformation in China. Similarly, due to price, trade contract terms, policies and other factors, the current soybean trade financing faces a huge risk. If the investment funds of enterprises with financing soybean business are not well managed, the enterprises will face a huge risk of asset devaluation. Therefore, this paper analyzes the factors that will bring risks to soybean financing in the society, understands the information of Chinese soybean import enterprises, and gives constructive risk control opinions and green financing methods for various factors that will bring risks to the financing of China's soybean trade. We should pay close attention to the trend of international soybean market, adverse contract terms, and advantages The management mode of soybean products will be changed, so as to reduce the production cost of domestic soybean and the price of domestic soybean, so as to fight for the right to speak in the international soybean market, help the enterprises with soybean financing business to reduce the business risk, reduce the impact of changes in foreign economic environment on soybean production and the asset damage to Chinese enterprises.

Keywords

Soybean Financing, Influencing Factors, Risk Control, Green Financing

Cite This Paper

James Yong Liao. Financing Risk Based on the Direction of Soybean Trade. Academic Journal of Agricultural Sciences (2022), Vol. 3, Issue 1: 14-26. https://doi.org/10.38007/AJAS.2022.030102.

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