China's Real Estate Enterprise Capital Structure Strategy Under Market Competition

The real estate industry belongs to the industry which is capital-intensive,business cycle is long,regional competitive is strong,industry correlation degree and investment risk is high,greatly influenced by macroeconomic and policy regulation.Choose good capital structure is essential for the China's Real Estate Enterprise.At present,the inventory sales of industry is slowing,costs are rising,profit margins start to slide,leverage is high,shortage of funds and other issues highlighted.The real estate market is in a critical period of transformation and upgrading of industry consolidation,for the fierce competition in the traditional formats,is related to the survival of enterprises,forcing companies to adopt various strategies to deal with in the industry.The China's Real Estate Enterprise can gain a competitive advantage in the competition and achieve the enterprise long-term development through choose good capital structure.So study capital structure of China's real estate enterprise under the competition in the market environment is necessary.This paper tries to study capital structure of real estate industry under the market competition.The research background,significance and the theory of capital structure with market competition will be elaborated at first,including the review and comment on the research status at home and abroad.Combine with the present situation of the development of the China real estate market,analyzing the China's Real Estate Enterprise capital structure and competitive advantage,get under the different stages of competition,the China's Real Estate Enterprise should choose different capital structure to cope with the market competition.Before the arrival of the fierce market competition,the China's Real Estate Enterprise would be appropriate to reduce the rate of leverage of enterprises,to deal with the late arrival of mass market competition.This article use Vanke for case study,to observe Vanke capital structure changes in the different degree of competition in the market,found that Vanke has experienced a low debt to the dynamic process of high debt.The reason of changes in its capital structure is analyzed in detail,and finally the whole article tries to summarize the content of research,pointed out the deficiency of the research and future research work.