Research On Capital Chain Management Of Real Estate

The real estate industry is a typical capital-intensive industry which has the characteristics of long cycle and large capital demand.Recently,the government has released a series of tight monetary policy,credit policy,loan limitation and other strict control policies with investment expansion of real estate and housing price doubling.In this economic situation,the real estate industry is also faced with many negative effects,such as difficulty in capital financing significant amounts of funds occupied by costs and contra flow in slow speed which makes the situation of China’s real estate industry more and more severe.In this context,it is very significant to study and analyze the capital chain management of real estate to ensure the healthy development of real estate enterprises and the sound development of China’s national economy.To regard Bigui Yuan as research object,analyze its current status of capital chain management from capital raising fund utilizing to fund contra flow based on the capital chain and capital chain of real estate management theory with the methods of literature research and case analysis.The following problems are founded such as unreasonable financing structure,excessive land expense,high cost,slow turn over for accounts receivable,slow capital contra flow and so on.After further analysis,the root causes of the problems are mainly due to the high proportion of debt financing,the lack of dynamic cost management in all capital chain steps and weak liquidity of account receivables in contra flow.Based on the analysis of the existing problems and causes of Bigui Yuan,some Suggestions such as implementing diversified financing methods,implementing project cost dynamic management to control cost deviation,adopting sensitivity analysis to reduce capital risk and improving marketing methods are proposed.Through the research on the capital chain management of real estate companies,it not only improves the existing problems in the capital chain management of Bigui Yuan but also provides an important reference for other real estate companies.