A Research Of Financial Strategy On The Real Estate Listed Corporation

As an important part of the national economy, the real estate industry is closely related with Chinese economic development. The development of China’s real estate industry has gone through a long process. Looking back over the past decade, external environment of the industry has been changeable. In2003, the State Council promulgated the policy to support explicitly the sustained and healthy development of the real estate industry. Since then, the real estate keeps booming, resulting in rapid increases in property prices. During that period, in order to inhibit the excessive development of industry, the government has begun intentionally to carry out macro-control to maintain price stability and ensure the rational development since2005. With the outbreak of the global financial crisis in2008, the whole industry has been falling into a transient downturn. However, owing to a bailout of the government, a rapid rebound occurred in2009, which led to the surge. The housing bubble soon began to accumulate while volumes and prices were far more than the past. The Party and the State Council pay high attention to the housing problem which has become the serious livelihood issue. Therefore, the government started to regulate the real estate industry vigorously at the beginning of2010, The New Ten State Regulations in April, Five State Regulations in September, New Eight State Regulations in January of2011and the Newest Five State Regulations in March of2013came out successively. By enhancing the efforts of adjustment and control, the government shows a strong determination.Above all, the external environment of the real estate industry turns to be abominable. Under this background, the author focus on the survival of the status quo, selection and implementation of the overall strategy, financial strategy, analyzing the way of enterprises to adjust themselves and adapt to the external environment.This article discusses a research about the selection and implementation of financial strategy to the Chinese real estate enterprise based on the theory of life cycle. From the macro environment to the specific situation, from the financial characteristics of the total listed Corporation in property to the strategy implementation status in a specific enterprise, the author analyses them step by step.This article consists of six chapters. In the introduction, backgrounds, significances, purposes, thoughts and research methods were considered as well as the expected contributions. Then, the second chapter was the domestic and international literature review, mainly elaborating the research process and phase achievements of financial strategy. The third chapter offered some comments on the related theories of financial strategy, including the definition, the contents and how to choose and implement the strategy. Next, the fourth chapter started to discuss the financial strategy.around the real estate. It was about the macro environment through analyzing the development course and the influence of the industry cycle, environmental factors on the financial strategy. In fifth chapter, the author investigated the specific financial strategies, including financing strategy, investment strategy, dividends distribution strategy under the current industry cycle from2009to2011, which was mainly combined with financial data of listed real estate corporation. The next chapter was the case analysis, in which the author has chosen Vanke to study the self-adjustment in own life cycle, adapting to the changable external environment and industry life cycle by adjusting its financial strategy as well. Finally, the article summarized the conclusions of this research and put forward the corresponding suggestions.(1) The article discussed the life cycle both in the industry and in the enterprise. It systematically summarized the development of Chinese real estate industry according to the theories above. Used the corresponding data as support and qualitatively judged the stage of our the real estate industry.combined with industry life cycle theory.(2) A strong timeliness. The Statistical Description was adopted to analyze the implementation of the financial strategy in the listed real estate corporations based on data from2009to the middle of2012, that could reflect the current operating performance and financial condition of the listed Corporations more accurately.(3) This paper has chosen Vanke to study the self-adjustment in own life cycle, adapting to the changable external environment and industry life cycle by adjusting its financial strategy as well. Therefore, it explained the importance of financial strategy through the case.