Financing Risk Control In X Real Estate Corporate

The real estate industry, a pillar industry of China national economy, has occupied amore and more important position in the modern economy and society. The real estatedevelopment project has some Characteristics,such as large scale, long cycle, expensivevalue and so on,which make real estate enterprises need huge capital support. A widerange of financing channels and the low cost of capital has become thecore competitiveness of real estate enterprises.Due to the slow developmentof China financial market, enterprise self-raised funds, bank loans,part of the deposit andpayment in advance have become the primarily traditional financial method. With theescalating real-estate related regulation and control in recent years, the traditionalfinancing channels are being blocked continuously. In order to survive,real estateenterprises was forced to try to get some of the "new" way. Such as the trust financing,real estate funds, initial public offerings, etc. These new financing channels and financingmode were ride up and rapidly growing, at the same time they will bring new financingrisk. Financing risk is everywhere, ever present and inevitable. We should analyze thepotential risks in-depth and control these risks reasonably in order to ensure the survivaland development of the enterprise.Under this background, this paper in-depth analyzes and studies the financingrisk control issues of X Real Estate Company. Through elaborating research background,purpose, significance and innovation points, we descript the research framework andtechnical route to make the readers understand writing foundation and direction of thispaper. And through the summary of related financing risk control theory such as M&Mtheory, Trade-off theory, Pecking Order Theory etc., lay the foundation for the subsequentdemonstration of this article. Through the analysis of current situation of Real EstateFinancing, this paper focuses on the impact on the real estate market of ChineseMacro-control policies in recent years. Then, according to the financing situation andexisting problems of X Real Estate Company, proposes specific improvement suggestionsand countermeasures from policy insight, operational efficiency, financing channels andcapital structure etc. Finally, fan out from a point to an area, leaves inspiration for thedevelopment of the entire real estate industry.After years of macro-control, large real estate companies have better financingcapacity and R&D strengths due to scale effects, and will get a higher profit rate, but thedisadvantages of S&M real estate companies will become increasingly intensified, and financing difficulties will become more obvious, even some S&M real estate companieswill face the risk of bankruptcy and closure. Therefore, broadening the financing channelsand better financing risk control has become the problem urgently need to solve for thereal estate companies. From the perspective of the real estate business, this paper uses theresearch methods that theoretical analysis combined with case analysis, explores theimportance of financing risk control and the control process and strategies, this will helpthe real estate companies to adopt more practical means of financing, develop moreeffective financing strategy, and achieve better financial status, simultaneously, increasetheir financing risk control level, enhance their core competitiveness of enterprises.