A Study On The Internal Risk Control Of Chinese Realty Developers

The realty industry, as playing a critical role in GDP growth, contributes much to the economy development in every country of the world. In the late period of the Opening Policy in 1980's, Shenzhen Special Economic Zone carried out the exper i ment of the grant and transfer of the right of I and use, and the rea I ty operational management in China began. In the past 23 years, Chinese economy made great achievement. The realty business, developing rapidly, has become a pillar industry in most first tier and second tier cities of China. The bus i ness makes the most prof i t amongst ali industr i es. I ts annual mean revenue of over ten billion yuan stimulates the national economic turnaround. The global economic crisis in 2007 badly affected Chinese realty business. Whi le the macroeconomic control started in 2011, Chinese realty industry adjustment began. Chinese economy went downwards. Chinese stock market suffered a bear market. The turnover of the real estate market shrank. It becomes critical of every realty enterprise to get stronger and develop more rapidly. The internal risk control of Chinese realty developers shows its importance.The thesis articulates:Part One:It introduces the risk management, the internal control and the prosper i ty of Ch i nese realty business. On the next, it researches the economic environment in the post economic crisis period, its influence on the internal risk control of Chinese realty enterprises. Then it introduces the background and significance of the topic, the references, the innovation of the research and its shortages.Part Two:It introduces the theories of the internal risk control of Chinese realty enterprises. Risk ingredients and risk system articulate the origin of risk control theories, the classification, the history, the general process of risk management, and the recognition and measurement of risks. It analyses and art iculates the internal control theories, and its or i gin and hi story. The basic tools of risk control acts as a theoretical instruction of the thesis.Part Three:It introduces the current situation and issues of Chinese realty developers, the macro and micro factors of risks of these enterprises. Then it studies the influential factors of the internal risk control of Chinese realty enterprises.Part Four:It introduces the framework of the internal risk control of Chinese realty enterprises.Part Five:It contrasts and analyses the internal risk control of Chinese real ty enterprises with international enterprises. The research on the internal risk control of realty enterprises in the U. S, U. K, Australia and Japan provides successful examples for the surveillance and control of Chinese realty enterpr i ses.It ends with an enlightment of the mechan i sm of the i nterna I r i sk control of Chinese realty enterprises.Part Six:It gives political suggestions to the internal risk control of Chinese realty enterprises. Then it comes up with the foundation of improving the internal risk control of Chinese realty enterprises. It provides suggestions of the organizational structure, internal risk control mechanism and surveillance mechanism of Chinese realty enterprises for the policies. The thes is is written with the hope that i t supplies an inspiration for corporate finance management, financing resources, higher ROI, and market risk aversion for Chinese realty enterprises.