The Research On Managing Working Capital Of Real-estate Enterprises

Real estate is a pillar industry of our national economy and plays a remarkably important role in modern economic life. In recent years, with the sustainable and rapid development of our real estate industry, especially after the 17th National People's Representative Conference, our central government has issued the requirement of scientific development and formulating a harmonious society. As a result, though facing this excellent opportunity, some domestic real estate companies are also faced with many severe challenges such as overheated development, falsely high housing price, waste of land resources, upgrading financial risks and lagged development and management etc. In order to regulate the real estate market and promote its healthy development, the government has newly issued a couple of measures and policies including adjusting and controlling land supply, rectifying land market, controlling real estate loans, guiding development structure etc. As a typical capital-intensive industry, the features of big investment, high risk, long cycle and supply chain have increased the importance of the managing working capital of real estate enterprises. As all knows, holding an important position in a company's management, working capital guarantees the survival and development of the entire company. The high or low return at one certain period also directly depends on the level of managing working capital, which deserves enough attention accordingly. From observing the current situation of operation management of real estate enterprises, this thesis researches constructing and improving the operation management mechanism of working capital, which helps improve the management level and further regulate the entire real estate market.Starting the basic principle of working capital management, this thesis manifests the basic definitions such as the goal, content, features of working capital management, takes into consideration the theoretical and practical situation of domestic and foreign working capital management, analyses the characteristics of various phases and their key steps, illustrates the influence of project change on the company's performance, so as to master the meaningfulness of working capital management to the operation of real estate enterprises. By way of analyzing our domestic current situation in this area, this thesis compares, summarizes and clarifies the basic features of various phases of a real estate project development and the inter-connections within the operation, comparatively analyzes the current capital operation model, explores the vital influential steps, precisely masters the existing problems and their causes, systematically ponders about the management solutions and execution plans so as to elevate the competitiveness of the real estate enterprises.The thesis specifically illustrates the major problems and their causes that our real estate enterprises face in the economic crisis. With view to the improving measures, the thesis proposes real estate enterprises to adopt securities financing, credit financing, fund financing and many other channels, and to introduce overall budget management, risk management and "zero operation capital" concepts to solve the major existing problems in the managing working capital of domestic real estate market, which is of considerable theoretical and realistic meaning.