Research On Financing Strategy Of Greentown China Based On Life Cycle Theory

Compared to enterprises in other industries,real estate enterprises require a large amount of funding support.Real estate projects have a long development cycle and occupy a long time of funds,so the demand for financing is relatively high for real estate enterprises.In recent years,the country has always adhered to the principle of "housing does not stir fry".Currently,the country’s economic development is facing triple pressure.We have firmly implemented the strategy of expanding domestic demand,and in the face of the overall weak situation of the real estate industry,we have successively introduced policies to stabilize the real estate market.As a result,the financing environment for real estate enterprises has been improved,but the financing for real estate enterprises is still a problem that enterprises face.Nowadays,there are various financing methods for real estate enterprises,and financing channels are constantly innovating.This requires companies to develop optimal financing strategies based on their own development and characteristics.At the same time,enterprises are in different life cycle stages,and they have different requirements for financing.This article combines the theory of enterprise life cycle to study the financing strategies of real estate enterprises.In July 2006,Greentown China successfully went public on the Hong Kong Stock Exchange.Through continuous strategic adjustments and seeking transformation,it has now grown into a leading enterprise in China’s real estate industry.Greentown China has always been in a rapidly changing development trend,and it is worth exploring whether its financing strategy can meet the development needs of different life cycle stages.The financing process of Greentown China can also provide sufficient reference for other real estate enterprises’ financing.Therefore,this article selects Greentown China,which is a representative enterprise in the real estate industry,as a case study.Based on the theory of enterprise lifecycle and financing,it introduces the company overview,financing environment,and development status of Greentown China,divides its lifecycle,and studies the implementation of financing strategies at different stages of its lifecycle,using a combination of qualitative and quantitative analysis,the effectiveness of financing strategies in different life cycle stages of Greentown China was analyzed from six aspects: rationality of financing methods,timeliness of financing,appropriateness of financing scale,financing risks,financing costs,and fund utilization efficiency.The problems and advantages of financing strategies in different life cycle stages of Greentown China were identified.This article believes that Greentown China should optimize financing from four aspects: reducing financial leverage,replacing perpetual bonds,improving fund utilization efficiency,and strengthening internal financing capabilities.It also draws inspiration from the financing strategy research of the case company Greentown China at different life cycle stages,for other real estate enterprises to learn from.