Research On Financing Plan Of Shimao Real Estate Group

With the four decades of the process of reform and opening,it makes our country more prosperous and powerful.The economic growth has continued to ascend rapidly.In the decade from 2007 to 2017,the annual growth rate of GDP in China has maintained an increase of no less than 8%.The growth rate of disposable income of the urban residents is no less than 6.4% as well.Although the future macroeconomic growth may slow down,but our real estate market can still maintain the tendency of steady developing because of the great supporting from the government and the leadership of the party.People's demand on housing is closely related to their GDP level.According to the research from World Bank,the real estate industry has entered into a period of rapid development when per capita GDP level is between $600 and $800.The real estate industry has stepped into a period of steady ascending growth when per captia GDP arrives at the level between $1300 and $8000.In the year 2017,our per captia GDP reaches the level around $8836,which means the industry has stepped into a period of steady ascending growth.Until to 2006,Real estate industry has gone through three complete cycles.The current period belongs to the forth one.Based on the data of various areas in our country,the little cycle is for about three or five years in this industry field.In the past decade,the growth rate of real estate selling in China shows a small cycle of about 3 years,which is composed by one year ascending and two years descending on the selling amount.The share price trend of real estate sector is highly synchronized with that of sales volume in the same month,while the price basis is delayed for two or three quarters.The change of the sales volume becomes the signal of the pre-judgement in real estate sector.The current cycle length is expected to be around 5 years,and it has stepped in to the regulation period now.Under the background of the destocking,the period of ascending has been extended.Sales growth is rising in two consecutive years,but it was regulated and controlled in Sept 2016.The said five years cycle is including the two years ascending,one year controlling and two years descending,it is equivalent to overdraft the demand for the next cycle.The development of real estate industry is closely related to national policy and social environment factors.Real estate has become a monetary phenomenon in China and as an important role in the development of national economy.In recent years,destocking is the main theme of the real estate market,the continuous regulatory policies and increasing land prices restrict the development of small or medium-sized enterprises in this flied,capital strength and financing capacity has gradually become the dominant factor in the industry competition.Capital is the blood of real estate.Financing channel is the communication of funds.Turnover rate is the essence of capital leverage.Real estate enterprises should be keen insight into the policy and economic environment,flexible choosing the financing channels,carrying out diversified financing,and dispersing financing risks.Under this situation,to dig those outstanding real estate companies which owns the steady operation,high potential,comprehensive strength and strong sense of social responsibility become very important.Shimao group works as the leading company in this flied,making the research have more practical significance.Studying the various financing channels of enterprises,exploring their financing risks and strengthening the prevention of risks will help enterprises to get sustained financial support,ensuring their long-term and stable development,so as to promote investment and financing,these are important conditions for the development of enterprises.The government is encouraging Shimao group to actively improve financing modes and effectively expand financing resources,which is leading entire industry for a steady development as well.The research is based on the financing theory and the background of our country.We shall closely linked to the current macro-control policies before to conduct an analysis.It is on the study of the case from Shimao real estate group,which is a leading cooperation in the flied.The study is consisted of financial analysis,policy research and case analysis,so as to solve the pain point of front-end financing.Asset securitization financing is to activate the stock assets,rapid recovery of funds,and solve the current market fund shortage problem.How to improve the sustainability of Shimao Real Estate Company's financing is an important research topic.It needs fully understanding of various financing channels and their own financial structure,formulating appropriate financing products and models,and constructing suggestions for controlling the financing process,thereby to improve the profitability and core competitiveness of enterprises.