Research On The Impact Of Purchase And Loan Restriction Policy On The Financial Performance Of Real Estate Enterprises

As a vital part of China’s economic structure,the real estate industry is related to almost all aspects of society,from macroeconomic operation and social development,to everyone’s life and living are closely related to real estate.Since the implementation of the marketization of the real estate industry in China,the macro-control of the real estate industry by the Chinese government from 1998 to 2020 has mainly gone through three stages,which are to encourage development,strengthen supervision and curb excessive development.This paper focuses on the third stage,and conducts an in-depth study on the relationship between the purchase and loan restriction policy and real estate enterprises,which plays an important role in this stage.The research of this paper aims to solve the following problems:(1)how the purchase restriction and loan restriction policy can affect the financial performance of real estate enterprises,that is,the impact path;(2)Under the influence of the purchase and loan restriction policy,what changes have occurred in the financial performance of real estate enterprises;(3)Whether the purchase and loan restriction policy has achieved the implementation goal of controlling risks and promoting the healthy development of the market.Focusing on these three main issues,this paper explains the above problems based on MM theory,supply and demand theory and efficient market theory,and uses the methods of summarizing existing research,combining case analysis and comparative analysis between different enterprises.This paper finds that:(1)The purchase and loan restriction policy can change the market supply and demand relationship and reduce the sales volume,and can also increase the cost of capital and weaken the financing ability,thereby affecting the financial performance of real estate enterprises.Specific paths include forcing enterprises to reduce "short-term debt and long-term investment",relending shadow banking,and lowering the value of collateral.(2)The impact intensity of the loan restriction policy in 2020 was generally higher than that of the "purchase restriction order" around 2015,and for enterprises with low financial risk of stable operation,the impact of the purchase and loan restriction policy on profitability was negative,but the impact on operating capacity and solvency was significantly positive;For enterprises with high financial risks of operational instability,the impact of the purchase restriction and loan restriction policy on profitability,debt solvency and operating ability is negative.The difference in impact is due to the fact that the latter’s daily operations are highly dependent on the renewal of new liabilities,while the former can actively adjust its business strategy to meet policy requirements.(3)The purchase restriction and loan restriction policy can effectively "deleverage and de-inventory" real estate enterprises,promote stable operation and stable development of enterprises with low financial risks,and help curb the low-quality development of high-risk enterprises and optimize the market environment,so the policy has basically achieved the implementation goal.This paper innovatively combines the purchase restriction policy with the loan restriction policy,and systematically reveals the intrinsic relationship between the policy and real estate enterprises from a longer span and a more comprehensive perspective.This paper further enriches the theoretical system of research related to the impact effect of real estate policies,and provides an important reference for government departments to optimize regulatory policies and enterprise design strategic layout in the future.