Financial Risks And Prevention Of Binjiang Group's Scale Expansion In Debt Under The Purchase-restriction Policy

After experiencing rapid development,the real estate industry has become an important part of the national economy.However,behind the rapid development of the real estate industry,the problems arising from it have gradually emerged.The sharp rise in housing prices,the declining arable land resources,and the increasing risk of the housing market bubble have all challenged the sustainable development of the national economy.To this end,following the promulgation of the “National Ten Articles” implementation rules in 2010,the State Council has successively introduced a number of purchase restriction policies to control the real estate market.Every time the purchase restriction regulation will make the real estate industry as a whole down,the market profits will decrease,competition will intensify,and real estate enterprises will face Financial risks have increased.Therefore,many real estate companies have begun to re-strategize and seek new ways of development.Based on the method of case study,this paper uses government regulation theory,trade-off theory and financing priority theory to summarize the impact of the 2016 purchase restriction policy on Binjiang Group,a leading enterprise in Zhejiang real estate industry.Under the strict purchase restriction policy,Binjiang has to expand rapidly through high debt for survival,with a view to increasing market size and industry influence.However,this radical debt expansion has caused serious financial risks.This paper analyzes the specific mechanism of financial risk caused by debt expansion under the purchase restriction policy,and discusses the phenomenon in depth.The research in this paper finds that the purchase restriction policy will aggravate the financial risks of real estate enterprises.At the same time,real estate companies need to be cautious in debt expansion.Therefore,this paper proposes the following practical prevention suggestions: expand equity investment,optimize capital structure;change investment direction,accelerate transformation and upgrading;control theproportion of unsettled real estate sold;cater to the purchase restriction policy and strengthen peer cooperation.