Theresearch On Financial Strategy Of Real Estate Enterprises-Research On Vanke

Since China’s reform and opening-up, the real estate industry has beenthriving and developing rapidly,and now has become a driving force of economic growth.In the pastdecade, China’s real estate companies achieved an annual growth rate of more than 10%, coupled with its strong influence on the upstream and downstream industries.The development of real estate has been popular concerns from all walks of life, and the industry has also become a focus in academic world.Real estate is a capital-intensive industry which demandsan enormous sum of funds.Itsoperating cycle of the project isfairly long, and the financing activities are complicated and sensitiveto the policy. The development of real estate financingin China is relatively late, and the relevant theoretical research and market order is not perfect. Most of the real estate enterprises are dependent on bank credit very much, resulting in insufficient financing or increased financing risk. Moreover, the financing structure of the industry is unreasonable, and related policies on new financing has not yet been released, so the primary market of entire real estate financing is not balanced, and the secondary market has not been established yet. So theproblems of the financing of real estate companies have become increasingly prominent.What are the characteristics of the financing of real estate industry? What are the problems? How do the leading enterprises solve their financingproblems? What’s the direction of its development? What should the government and regulatory bodies do? All of these are worth studying.Therefore, this paper does a research on the financing strategy of China’s real estate enterprises. First of all, on the basis of the theories of the financing of real estate enterprises, it makes a study of the financing scale, structure, channel and mode, analyzes the basic status of the financing of the real estate industry, and summarizes the problems. Besides, for a deep understanding of the financing strategy of China’s real estate enterprises, the paper makes a research on the case of Vanke, a famous real estate enterprise in China. Based on the analysis of relative financial indices of Vanke and its financing characteristics, it appraises Vanke’s financing strategy and compares its financing status with other enterprises’. Finally, with the help of mature experience of the enterprises in developed countries, the paper brings forward the feasible recommendations for the improvement of the financing strategy of China’s real estate enterprises, which are applicable domestically.