Study On The Crisis Management Of Chinese Real Estate Industry After The Financial Crisis

After the outbreak of the USA subprime mortgage crisis in2007, it is quicklyswept the world into a global financial crisis. As the financial crisis has affected ourcountry economy, the real estate industry as one of the backbone industry of ourcountry’s economic development is also significant impact. Plus, since the launch of anew round of housing cycle in2001, the prices of China’s real estate continue to rise,it has obvious present a real estate bubble. In the situation of intervened, the realestate industry appear the real estate sales area down dramatically, a large number ofunoccupied houses and capital backflow difficulty, some enterprise even appearcapital chain rupture and face the threat of bankruptcy.After the transition and adaptation from the second half of2008to the first halfof2009, China’s real estate market is gradually out of the troughs, and presents thetrend of the recovery. After the financial crisis, the real estate enterprise how to carryout crisis management, conform to the trend, get rid of the crisis, and quickly embarkon a healthy path of sustainable development, is an important and urgent task.The purpose of this paper is to find out the common operating characteristicsamong the enterprises that have the strong crisis response capability.This paper takes the Chinese real estate enterprise as the research object, andselects62real estate enterprises which are listed at the Chinese A-share market as theresearch sample. From the perspective of financial, this paper selects three dimensionsand six indexes as the real estate enterprises cope with the crisis ability evaluationindex, through the factor analysis method, selects three main factors, the compositescore of the enterprise crisis response capacity, and according to this score, allsamples enterprises cope with the crisis ability are carried on the rank. Through thecomparative analysis, we can summarize the common management features amongthe real estate enterprises that have strong crisis response capability, thus put forwardthe hypothesis that improve the degree of diversification, scale and level of debt, canenhance the real estate enterprise’s ability to cope with the crisis. Then, using thePearson analysis method test enterprises cope with the crisis ability respectively withthe three factors. The results show that, it doesn’t have significant correlation betweenthe crisis response ability and the enterprise diversification degree growth rate,business scale growth rates, and it has a significant negative correlation between thecrisis response capacity and the debt levels growth rate. At the end, according to the conclusion of the study, this paper puts forward thecorresponding suggestion, hoping that this paper can help the healthy and sustainabledevelopment of the China’s real estate enterprises provide some references which canenhance their ability to deal with crisis.