Research Of Financial Risk Control In The Operation Of X Company’s Private Real Estate Fund

Since the reform and opening-up policy, with the rapid development of theeconomy of Chinese socialist market, private funds of China have experienced aprocess of starting from scratch and growing from small to large. The real estateindustry is closely related to the domestic life, and house prices have always been ahot topic. Therefore, the development of real estate enterprises have an importantimpact on domestic economy. Beginning from2009, the government has legislatedmacro-control policies about the real estate industry, resulting in the expansion offinancial pressure in the industry, so broadening the sources of financing becomes anurgency. At this time, the private equity investment has successfully attracted theattention of the real estate business. With the help of private real estate fund, theprivate real estate fund company develops quickly. Because the private real estatefund is a new tool of financial innovation, its innovation and uncertainty makeventure capital institutions have to face many potential crises, and financial risk isone of the significant which directly threats it. Among various potential crises, thereal estate industry takes the highest financial risk in all kinds of industry, and theprivate equity investment also takes high financial risk. The private real estate fundcompany should be more careful about the financial risk when private equityinvestment is put in the real estate industry. Opportunities and challenges coexist,facing the opportunity, so how to control the risk,how to distinguish measure analysisand control the risk become an urgent task which needs to be work out for privateequity real estate investment funds company.This paper studies the control of financial risk in private real estate FundCompany by the form of case study. This article firstly introduces the basic theory offinancial risk control in private real estate funds, then combined with the practice of XCompany, a detailed analysis of the financial risks as well as controlling measureshave been taken from the three aspects. After analysis it is found that FortuneCompany have some financial problems, such as imperfect financing system, limitedfinancing channels, unscientific valuation of investment projects, single investmenttool and selection confusing in exit timing and exit channel, etc. According to theproblems, some suggestions are proposed to improve the financial risk preventionmeasure for the benefit of finance risk management. The financial risk controlmeasures and the improved methods about X company have universal practical significance, and private real estate fund organizations can thereby learn from itaccording to their own situation.