Research On Financial Risk Evaluation And Control Of Real Estate Enterprises Under The New Regulation Of Three Red Lines

As China’s real estate industry enters a new stage and faces new challenges,while implementing city-specific policies intensively and issuing the new regulation of Three Red lines for the first time to further tighten industrial credit policies,China’s capital intensive real estate enterprises are facing increasing uncertainties.Therefore,for China’s real estate enterprises,it is more important to accurately identify and analyze existing financial risks and take effective control measures.HD group is a large private real estate enterprises in China,by combining with the relevant theoretical knowledge and taking a variety of analysis methods to effectively identify,analyze,and control the financial risk of HD group,it can not only help HD Group to control potential financial risks,resolve the debt crisis that has occurred better and provide reference for other real estate enterprises,but also can help to keep the bottom line that the real estate industry does not occur systemic risks and does not cause cross-system risks.In this thesis,HD Group is taken as the research object.Firstly,the thesis explains the background,purpose and significance of the research,and the relevant literature review of domestic and foreign scholars in the financial risk assessment and control;Secondly,the thesis introduces the basic concept of financial risk and introduces capital structure theory,internal control theory and risk management theories;Thirdly,combined with the new regulation of Three Red lines,taking HD Group as an example,the thesis identifies the financial risks of HD group from four types of risks: investment,financing,operating cash flow and earnings distribution risk,and points out that the impact of the new regulation of Three Red lines on HD Group’s financial risks is mainly reflected in four aspects: increased investment risk,significant financing risk,augmented operating cash flow risk and prominent earnings distribution risk.Fourthly,the thesis selects 21 index variables including the Three Red Lines new regulation indicators,establish the financial risk evaluation index system,and bases on the 2020 financial data of HD Group and 59 other real estate enterprises listed in A shares,unifying the direction of different target polarity index variables before making related test and factor analysis to systematically evaluate the financial risk of HD group.This thesis finds that HD Group comprehensive factor score is negative,ranked the 40 th in 60 sample enterprises,so there is a large financial risk.After the analysis of each single factor score ranking,this thesis finds that HD Group is facing more serious long-term debt repayment risk and short-term debt repayment risk,that is,the financing risk.Fifthly,based on the financial risk evaluation of HD Group,some specific control measures are put forward one by one for HD group’s investment activities,financing activities,operating cash flow activities and earnings distribution activities.