Early-warning Of Financial Crisis In China's Real Estate Company For Empirical Analysis

Financial Early Warning research not only has important theoretical significance, but also has a strong application value. Relative to foreign countries, the domestic research started relatively late, the existing research is mainly for all the industries and businesses, but in real life in the management of the operations of different industries have very different, the corresponding reflected in corporate financial data will inevitably reflects the different characteristics of their own. This paper will address the financial risk early warning system for the real estate industry to conduct in-depth study was chosen mainly because of the industry in recent years as China urbanization process, the housing system reform and the improvement of people income and other factors under a comprehensive, real estate with rapid development and the contribution to the national economy on the rise. However, with the price of real estate bubble continues to expand, as well as by the United States since 2007, the outbreak of the sub-prime mortgage crisis, government and financial institutions stepped up its efforts to control the real estate industry, real estate companies are constantly severe financial market environment in response to actively adjust the financial structure of the financial risk, avoidance of capital strand breaks, there operational risks. Based on this, on the real estate financial risk early warning research, not only for businesses, state and financial institutions and other related interests of the people have become necessary.Although only 20 years of development history, but strong demand and purchase sustained and rapid economic development so that the real estate industry into a high-growth, high returns and high risk industry. This paper mainly focus on the real estate industry, financial risk, combined with features of the real estate industry, thanks to corporate financial early-warning research, to build early-warning model of financial risks in China real estate industry to help real estate companies to understand their financial situation changes, to improve prevention risks, avoid breaking the chain of funds caused by the stagnation of the project and to take timely and effective measures to avoid or defuse the financial crisis that may arise.The real estate industry is the main pillar of our national economy is affecting a major factor in the financial market stability, but also with peoples daily lives and the industry, in case of severe fluctuations in the national economy would cause great harm will be caused great volatility in financial markets. This paper will combine the features of the real estate industry, thanks to corporate financial early-warning research results, research real estate industry, financial risk, and further financial risk early warning on China's real estate industry to conduct empirical analysis. This theoretical analysis and empirical testing will be combined theoretical point of view into empirical analysis, so that the real estate industry on the financial risk early warning system has the scientific and convincing.