The Research On Financial Risks Of The Small And Medium-sized Real Estate Enterprises

Nowadays, with the gradually slow economic growth in our country and constantly heatedcontrol policies about the real estate, there arises an increasingly strong competition amongthe real estate markets in China. Under this background, the real estate companies in Chinaare facing increasingly differentiation; and the market concentration is also rising. A fewstrong-comprehensive strength real estate companies are striving for significantly improvedperformance and efficiency by optimizing the layout of large housing prices, products andmanagement. However, most of small and medium real estate companies are struggling, forthey own single distribution channels and poor sales understanding; for they face cash flowdifficulties; and for they are weak in capitals, strength and internal management, etc, whichendows them with an increasingly big risk in financing, investment, business and othersectors. Financial risks, has become a problem for the reality of the existence anddevelopment of small and medium real estate companies, which is needed to be urgentlyaddressed. Focusing on the characteristics of small and medium real estate companies, andanalyzing the problems and causes of the financial risk of their existence scientifically canprovide the managers of small and medium housing companies with comprehensive,systematic and effective financial risk prevention measures, which pose a great significancefor the healthy development of China’s real estate industry.Based on the study, this thesis aims to introduce the current development status of China’ssmall and medium housing companies and highlight the development of the real estateindustry and the characteristics of small and medium housing companies in Qingyuan,Guangdong in recent years by analyzing and summarizing the theoretical results from thestudy related to domestic and international financial risks. On this basis, this thesis selects atypical small and medium size real estate company in this region as a case study, and makesa comprehensive analysis of the causes of its problems and financial risks. Finally, this thesisproposes effective financial risk-prevention measures in order to solve the financial riskproblem of small and medium real estate enterprises.