| With the stability of the political environment and the rapid development of the market economy,China’s real estate industry has also developed vigorously.The real estate industry has become one of the important pillars of the current national economy,and it has also driven the rapid development of a series of related industries.However,this extensive development approach has brought enormous risks and challenges,and led to a series of deep level problems: mismatch of funding maturity,unreasonable financing structure,excessive dependence on debt financing,extremely low utilization rate of overseas funds,real estate bubble,sharp rise of housing prices.In order to suppress price rigging and the speculation in real estate,the government takes measures to restrict property purchase.To ensure the specification of the financing,the government uses macroeconomic control policies.Financing has always been a key core competitiveness of real estate companies and a key factor in the success of business operations.The real estate industry has a long-term dependence on the development of bank loans.The proportion of listed financing,trust financing,bond financing and fund financing is relatively small.The rate of self-raised funds is declining year by year.The factors of above-mentioned has formed an illogical financing structure.The real estate industry has a series of characteristics such as capital intensive,high-input,high risk,long investment period and easy to be affected by national policies.After experiencing the national policy of restricting purchases and loans,the funds for residential sales remittances were significantly affected,the financing environment continued to tighten,the cash flow of real estate enterprises deteriorated,and the capital chain broke.This forced real estate companies to adjust their financing structures and seek new ways to solve financing risks.This paper chooses China Fortune Land Development Co.Ltd as the research object.It combines theory and practice through literature analysis and case study to analyze the financing choices and effects of enterprises,and then conclude its reference value.Firstly,it introduces the capital structure theory related to financing,the term theory,and the characteristics of real estate financing and the difference between PPP project financing and traditional financing.Secondly,the basic situation,business model,financing methods and financing channels of China Fortune Land Development Co.Ltd are introduced in detail.Based on the above-mentioned financing strategy,it not only analyzes the financing needs and constraints of China Fortune Land Development Co.Ltd in detail,but also analyzes its financing structure,financing period,financing cost and financing effect in detail,and also analyzes its financing problems.In a large amount of demand for funds,China Fortune Land Development Co.Ltd has used more than 20 financing methods to resolve financing problems.At the same time,it will bring more serious fund mismatch,the ratio of commercial credit financing to total assets declines year by year,and the financing structure is not robust enough.At the end of this paper summarize the experience of China Fortune Land Development Co.Ltd in making full use of housing sales repayments to ensure the smooth capital chain,skillfully using income right financing.And the entry into the bank is conducive to strengthening the relationship between banks and enterprises and obtaining strong support,while innovative financing methods are in line with the needs of funds.On this basis,further improvement suggestions are put forward,including increasing the turnover of accounts receivable,promoting real estate trust fund financing,enhancing the robustness of current assets financing strategy,reducing the degree of term mismatch to prevent risks,and building an Internet financing platform to broaden financing channels for other real estate enterprises,PPP projects and other enterprises. |
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