What May Change Capital Structure Of Listed Real Estate Company In China

For real estate companies in China, high asset-liability ratio, unitary financing channel is not rare to be seen in the market. Founded on the company capital structure related theories in and out of the country, the article is expected to have a deep exploration on Listed Real Estate Company's current capital structure, existing problems and the way to optimize business.The analysis on current capital structure of Listed Real Estate Company helps clarify the existing problems like high asset-liability ratio, unitary financing channel, enlightening the road forward for structural optimization. Meanwhile, by taking 2008-2010 annual financial data of certain listed real estate companies as classic samples, the article tries to explain the major factors that may exert influence on capital structure based on the method of Correlation Analysis & Multiple Linear Regression Analysis, who's conclusion shows us that: there a positive connection between size of the company, ability to manage assets and capital structure; while negative connection between solvency and capital structure; and no obvious signs that ability of growth, profitability or assets cover may affect capital structure. Based on the analysis of real samples, the article suggests that the first priority to optimize capital structure is to lower Asset-liability ratio down to a reasonable level, enlarge the ratio of internal financing & direct financing, to realize diversified financing channel through structural optimization. The article is to play a positive role in shaping a sustainable healthy real estate market in China.