China Real Estate Industry Risk Analysis Research

Real Estate in China's national economy has a very important position, whichcarrying the dual responsibility of national economic development and solving thehousing problems. Therefore, real estate in the current Chinese economic sectorsoccupies a very important strategic position. Over the years, China's real estateindustry has been hobbled forward market development and regulatory policies,changes in the industry ups and downs temporarily form a relatively stable industrytrends. Industry, market and policy possess instability and risk. Therefore, the study ofreal estate industry risk is very reasonable and important. Theoretical study andanalysis, supplemented by the risk of the real estate industry, which has appeared onthe market in the past, become a reasonable way to identify the risk of the currentChinese real estate industry, and find solutions or risk-averse solution ideas and paths.The real estate industryrisk analysis is a dynamic process and a systemic projectwhich aim to control, prevent, treat the risks to seek maximum protection andminimize the cost. The real estate industryrisk analysis is done by real estateenterprises by plan, organize,implement and control a series of marketing activities,including risk identification, risk analysis, risk prevention and risk management of thefour substantive stages.At present, the domestic real estate industry risk analysis is mainly focusing onthe risk identification, prevention during the process of forming investment decisions,and not concerned about the risk in the real estate industry in the development process.Qualitative analysis and experience in decision-making is still the commonly usedmethod for the real estate industry risk analysis. Quantitative analysis of someapplications, but not well reflect the nature of the risk, the policy mistakes of thephenomenon there are a lot. Many uncertainties can affect the real estate industry risk, which include the realestate industry itself, the surrounding environmental conditions, and even awareness ofthe lag, financial management controllability limitations, and even to from naturaldisasters and so on.Fundamentally, the risk analysis of the real estate industry is to analyze thevarious factors that affect the effectiveness of the real estate industry, in another word,is to examine the reliability of the real estate business investment to determine the riskof entire real estate industry. Understanding of the real estate industry risk, andclarifying and controlling the real causes of the risk, are the key steps to theimprovement of the real estate business efficiency, reduce or avoid the unnecessaryrisk of loss.The purpose of this thesis is by combining the real estate industry risk analysiswith the development of the real estate industry practice, to analysis and study the riskthat exist in the real estate industry, risk analysis, risk prevention and treatment, riskdecision-making, and thus propose the strategies to prevent the real estate industry riskbased on the market for our real estate business, in the face of global competition toprovide a theoretical basis and practical guidance to promote the stability of China'sreal estate industry, health and sustainable development.