The Finance Optimization Of The Listed Real Estate Company In China

After more twenty years development with many hard times, the real estate industry has been one pillar of Chinese economy, and a main indicator of the economy growth; also, it is very important to the ordinary's lives. Meanwhile, real estate industry is high capital demanded, so, its development needs the support of the finance sector. The main finance sources of Chinese real estate companies are bank loans, so it is very hard to make optimal finance decisions, and many companies face finance problems. At the some time, the risk of banks is increased, and also, the finance systems. Recently, the state government made many tight monetary policies; it caused more difficulty for the real estate companies to get loans from banks, how to find new finance methods and how to improve the finance has been a hot topic in the industry.In this paper, I studied some Chinese listed real estate companies, and tried to find an optimal way for their finance by analyzing finance structure, finance costs, finance risks, and the finance capability of those companies. Chapter 1 and chapter 2 were the introduction and the theory foundation. In chapter 1,I introduced the study background, the main subjects and the meaning; in chapter 2,I stated enterprise finance theories and 6 ordinary finance instruments; this was the foundation of this paper, getting prepared for the next analysis about how to optimize the finance strategy. Part ii is the main body of this paper, and it contains chapter 3 and chapter 4. In chapter 3,I presented 4 factors that may influence the optimal finance strategy, they are finance structure, finance cost, finance risk and finance capability. Also, I tried to make quantization of those factors, preparing for the construction of the finance model. Chapter 4 is the details of finance structure, because it is so complicated, there has been no certain conclusions, so this paper will discuss how to make right decisions in finance processes. To present the decision model of the finance structure, I used main factors analysis and multi-regression analysis with SPSS. Part 3, the fifth chapter is the conclusion; in this chapter I also applied the conclusion to Baoli real estate company, tried to optimize their finance strategy in 2010.In this paper, I analyzed the factors which may influence the finance strategy of listed real estate companies, and presented a model for finance strategy optimization, my aim is to make the finance pattern of these companies not only can meet the finance demands, but also can reduce the finance costs under certain risk levels. Such model considers the finance structure, finance cost, finance risks and finance capability, it might be useful for listed real estate companies and other companies to optimize the finance strategy.