Financial Strategy Of ZX Real Estate Company Of Choice

The Real estate industry in our country had been developing quickly since the implementation of marketization operation in 1998. Many private and state-owned enterprises,which had a forward-looking strategic sight and dedicated itself to the effective integration of capital and land, had rapidly grown into the nationwide real estate companies. However, with the housing price rising speedily, residents could not afford it. Forced by this urgent situation, our government began to regulate the industry by policy. The regulation had different influences on large, medium and small sized real estate companies respectively. Small companies would have to exit the market, while the large companies could make full use of the industry fluctuations to expand its scale through horizontal mergers. As for the Medium-sized regional real estate companies, there are large uncertainties. They can develop into the nationwide companies on condition that they are able to choose the proper strategies and break through the operating capacity bottlenecks. Otherwise,they are most likely to shrink into small companies or worst of all, be expelled from the real estate market. Therefore, the Medium-sized regional real estate companies should focus on the choice of strategic direction and breakthroughs of operation bottlenecks.The real estate industry belongs to the financial industry and is a typical resources integration oriented industries:Land and capital are their core resources. As a result, the financial strategy,which makes long-term planning on financing, investment, using and distribution has become the core functions of the real estate industry strategies. Whether the financial strategy is right will deeply influence the achievement of development strategy and competitive strategy carried out by the company. Thus,the Medium-sized regional real estate companies must enhance the research on choice of financial strategy, so that an appropriate financial strategy can be put forward to support the success of development strategy and competitive strategy.This paper combines the theory of financial strategy with the author's practical experience and chooses ZX,a Medium-sizd regional real estate company, as the research object. On the basis of the financial strategy selection process and through the by-point analysis of the influence factors, the paper comes up with the financial strategy of ZX under current circumstances. Besides, it also gives some advice on implementation strategy. The main ideas of this paper are as follows:First, it works out the conceptual understanding and the main content of financial strategy by summarizing the research. Moreover, along with the analysis of influence factors and the introduction of analytical mode, this paper also draws out the flowchart of financial strategic management and the selection processes.Secondly,in accordance with the financial strategy selection process, the paper analyzes the operating characteristics of the industry, investment environment, and financing environment. It has used the Porter Five Forces Model,PEST analysis model of external environment, and so on. It takes 20 listed companies in Shanghai, Shenzhen and Hong Kong as samples to analyse their financial characteristics.On the basis of this, it comes to the conclusion that the real estate industry should generally choose expansionary financial strategy.Then,according to the selection process of financial strategy, this paper starts to study on the financial strategy choice, and briefly introduces the regional industry environment and regional special competition environment. Besides, it analyses the company's financial capacity in detail, and interprets it comprehensively using SWOT mode. After introducing the company's choices of development and competition strategies, it sums up that the financial strategy ZX should adopt is: expanding structurally and tending to the overall stability.Finally,in allusion to the strategic problems ZX faced, the paper bases on the financial strategy that has been chosen and provides ZX with some suggestions on the implementation strategy and means of implementation.