A Case Study Of Jiuding Investment Mergers Zhongjiang Real Estate

The real estate industry is the important pillar industry of national economy,is the key component of industrial chain,which related to more than 60 related industries such as building materials,decoration,electrical appliances,metallurgy,transportation and so on.Since the reform of real estate in our country,the real estate industry has developed rapidly,during 2012-2015,it accounts for 26.2%,19.7%,18.9,14.18% in total fixed asset.It can be seen that the real estate industry plays a powerful leading role in the development of economy.At the same time,the 2015 economy faces huge downward pressure,a lot of places appeared inventory accumulation.Due to excessive reliance on bank loans,banks' real estate industry loans showed lots of bad assets.State carries out "de-stocking" to real estate enterprises in 2014.Due to the method with paying back bank loan with pre-selling commodity,the financial leverage and operating risk of the enterprise also increased.Although in 2015,the central bank cut interest rates five times attempt to stimulate the real estate industry's recovery,but the effect is not good.The real estate industry financing channel is too narrow,rely on to reduce the cost of capital is just a drop in the bucket.2016 is a important point in the reform period,the real estate industry also need to innovate financing tools,private equity funds,buyout funds,supply chain financing and so on,which will open up new financing gate.Based on the case analysis of Jiuding Investment purchase Zhong Jiang Real Estate,with collecting lots of real estate data,using comparative analysis,financial index analysis,highlighted the competitive advantage of Jiuding Investment.On December 22,2015,the China securities regulatory commission stopped private-equity firms listed on the new three board,which closing the list door of other private fund.Although the model of Jiuding Investment cannot be copied,but it gives a new pattern and train of thought for other domestic real estate private equity fund.Finally,this paper puts forward some countermeasures to the development of real estate private equity funds,it should complete all links,forecast the possible risks and benefits,improve the relationship between investors and investment projects and private equity.Finally,to achieve benefits goal,funds' managers will use the IPO,MBO to exit investment.