Study On The Financial Risk Control Of Evergrande Group From The Perspective Of Capital Chain

The real estate industry is one of the important industries that affect the lifeblood of China’s economy,and has injected endless power into the development of China’s economy over the years.However,in recent years,many real estate enterprises have been plagued by financial problems due to inadequate financial risk management and control such as debt default,which also has an impact on China’s economic development.Therefore,analyzing the problems in financial risk management and control of real estate enterprises,and taking relevant measures to improve them,to ensure the effectiveness and perfection of financial risk management and control of enterprises,will bring great benefits to the development of the entire real estate industry.Through the application of relevant financial risk early warning concepts,capital chain concepts and financial risk management theories,this paper adopts literature research method,case study method and comparative research method,and takes Evergrande Group as the research object to study the shortcomings of Evergrande Group in financial risk control from the perspective of capital chain,and then through the establishment of financial risk early warning positions and performance management mechanism,the construction of diversified and comprehensive risk assessment indexes Then,through establishing financial risk warning posts and performance management mechanism,constructing multi-faceted and comprehensive risk assessment indexes,conducting financial training and establishing financial audit process,etc.,to optimize the current status of financial risk control of the enterprise.Through the research of this paper,it is found that in the fund raising stage of Evergrande Group,there are problems such as high debt ratio,unreasonable ratio of long and short-term liabilities,and insufficient endogenous financing,which reflect the problems in its current financial risk control: according to the current financial risk control organization structure of Evergrande Group,due to the lack of coordination among various levels,the identification of specific financial risks is inefficient,and at the same time,there is a lack of setting up financial risk warning posts and corresponding performance management system.and the corresponding performance management system,thus hindering the enterprise to identify financial risks in a timely and effective manner.In the capital utilization stage of Evergrande Group,Evergrander’s blind land expansion,unreasonable diversified investment strategy and high dividends are due to its failure to establish scientific financial risk assessment indexes to evaluate the possibility of risk occurrence in this stage,which in turn makes the enterprise have problems in business expansion,investment decision and profit distribution;in the capital return stage of Evergrande Group,the low inventory turnover rate of the enterprise and The lack of long-term consideration in the asset sale strategy of Evergrande Group reflects the lack of training for financial personnel and the establishment of financial audit process of Evergrande Group.Finally,this paper puts forward suggestions for the improvement of the financial risk control system of real estate enterprises and proposes relevant improvement measures for the financial risk control problems of Evergrande in the three stages of the capital chain: establishing financial early warning positions and performance management system to effectively identify risks;constructing scientific financial risk assessment indexes to optimise risk assessment ability;strengthening risk control by carrying out financial training and establishing financial audit process.This paper aims to draw on the experience of Evergrande Group’s fall into the financial crisis.The purpose of this paper is to learn from the debt crisis of Evergrande Group,play a reference role in the current situation of financial risk control of other real estate enterprises,timely optimize the operation mode of financial risk control,actively explore a more effective new mode,and improve the competitiveness of enterprises.