Study Of Managing Strategy Of Changchun City Construction Developing Company Under The Macroscopic Adjust And Control

Since second half of year of 2003, the government has appearedpublicly a series of policies to limit the capital investment of fixed assetsagainst the hot phenomenon of the capital investment of fixed assets inindividual trade.In finance aspect: People's Bank of China announce "Notice aboutGoing Step Further to Strengthen the Management of Credit Business ofReal Estate"in June 5, 2003. the main spirit of this document is to reinforcethe management of finance business of real estate about commercial bankand to stimulate the healthy development of credit of real estate. The StateCouncil increases the fund proportion of develop articles of real estate from20% to 35%. At the mean time, the State Council controls the credit scope ofreal estate by controlling the general loan scope of commercial band. Itadopts two main measures: first is to practice window guidance incommercial bank because it increases very fast this year; second is toincrease deposit preparation 0.5% of commercial bank. People's Bank ofChina determined to increase RMB interest rate of standard criterion and toadjust loan interest rate of accumulation fund of personal housing andinterest rate of personal commercial loan.These policies'effects to real estate enterprise and personal buyinghouse are: Loan varieties of real estate were decreased, key of loan wasincreased, these proposed much higher requirements about fund actualstrength of real estate developing enterprise; The source of developing fundwas decreased, the risk of item's bad end was increased, the process ofexcellence winning and low-grade eliminating of real estatedeveloping enterprise was fast; It challenges the traditional mode of fundmanaging of group companies. Enlarging the financial burden of enterprisesrelying of borrowing or lending money as the main fund source. Delayingbuying behavior about the persons who buy houses. Loan key is increased insome districts, the person who ask for loan obtaining the difficulty of loan isenlarged; The demand of investments and high-grade housing is controlled.In territory aspect: The State Council announced "Notice aboutStimulation Continuous Healthy Development of Real Estate Market of theState Council"in Aug 12, 2003, the then it raised macroscopic adjust andcontrol to strengthen territory market, amplified supplying system of usingland plan of real estate developing of various places. Department of nationalterritory resources proposed in "Notice about Strengthen Territory SupplyingManagement to Promote Continuous Healthy Development of Real EstateMarket"to strengthen adjust and control in territory supplying of real estatedevelopment, strictly to practice centralizing unified management aboutterritory supplying, strictly to control total sum of territory supplying, fullyto elaborate the basic function about market in territory resource arrangement.Department of national territory resources and Department of supervisingunited to announce No.71 document in MAR 31, 2004, this document strictlyrequired various places to agree on selling historic leaving over questions interritory and it must be finished in Aug 31, 2004. After Aug 31, 2004, theywill fully abolish territory agreement transferring possession about operatingdevelopment articles.A few years later, some developing managers will leave the market, thereal estate market of China will be more regulate and more perfect.Because of "8.31 Big Limitation", all the people competed to buy landopenly by territory market. They depended on actual strength not relation.The enterprises which are lack of fund and capacity of mixing fund will beeliminated the market by the enterprises which have rich fund and bigstrength.Land of credits are two major lifeblood to the development ofenterprises, this time the macroscopic adjustment will clasp these towlifeblood, it will influence the market of house property very deeply. How dothe market of house property in Changchun face macroscopic adjustment?After the reform and open, the unceasing improvement of urban andcountry citizen's income provides motivity for the development of estatemarket, urbanizing and city alongs with its quickening construct ofinfrastructure provide tremendous space for real estate, thus the real estatemarket cherishes great potential demand. But the absolute level ofresidenters'income is still in low state, the consumption structure in grossincome is also in low-grade period. Owing to the high Engel quotiety, it isdifficult to change the potential demand of market into effective demand.Changchun is a inland underdeveloped city with little foreign investment.And the proportion of purchasing commercial housing of other personages inChangchun is small while it is mainly for the consumption of local people.But the house-buyers are quite rational under the long train of their marketsituation, therefore "purchase cherishing"is a serious phenomenon. Inaddition, there is a problem about the guarantee houses which are out ofguarantee houses broke 30% of commercial lousing and the total developedarea of the guarantee houses continuously for several years andforms the great impact.The supply of real estate market increases year by year, but thesupplying structure is not reasonable to some extent. It is acted by that thesupplying proportion of high-grade house, large-scale house andinfrastructure is higher, as a result large number of products are extravagant.The selling price in 2500-3500 yuan per square meter the residential typewith two or three rooms, with area of 70 to 110 square meters, such mid, lowsmall common dwelling is the most popular among consumers.The considerable parts among the hundreds of real estate developmententerprises are characterized with little capital strength, backward system andconcept, bad management and prestige. The other real estate tycoons broughtsome new developing ideas to Changchun after their coming recent years butalso brought into the sharp competition. The macro regulation and control ofour country gives the god-given chance for expanding enterprises to thosedevelopers with rich strength. However, the poor development enterprisesare rater difficult to pull through the crisis.Changchun Urban Construction Corporation is a small real estatedevelopment enterprise with following subordinations: Urban ConstructionAdvertising Corporation, Urban Construction Thing Industry Corporation,Urban Construction Industrial Corporation and Urban ConstructionLandscape Corporation. The last two ones are in the state of deficit becauseof bad management. In 2001, this corporation finished the reform ofshareholding system and own good administration structure. The staff havehigh quality in their specialty and each functional deportment developed theability to fight in coordination by their tacit agreement. Thecompany accumulated rich experience in development pattern, plan design,dwelling-type collocation, construction management, products selling andthing industry management of mid or low grade housing district. The formerproducts of the company have rational market orientation, good quality andthe company's good selling ability, they got nice economic benefits. Themanagement problem comes to light during our country's macro regulationand control. Shortage of funds and finance channels, being without landreserve. The indifferent brand awareness and the products which are lack ofinnovation and personality reveal the increasing by backward managementconcept.From the synthetically analysis, at present the most difficulty ofenterprise is lack of its fund, and lake of channels of mixing fund. The mainpresent responsibility is to expand channel of mixing fund actively. Ifenterprise wants to attract the capital investment and realize continuous,stable growing, it must practice trademark strategy. So enterprise shouldadopt the following manage strategy: expanding channel of mixing fundactively, elaborating the privilege of rich experiences in medium classhousing district, professionally developing medium class housing district bycentralizing limited resources to build up professional developing trademarkof medium class housing district.From the present circumstance of company, it is not the reality to takeadvantage of going on market and enterprise bond to mix fund. Carrying onmixing fund using trust mixing fund or joint capital and cooperation has thequality of managing. The company should take multi-cultural mixing fund...