Financial Risk Control Of Listed Company Of Real Estate

Real estate as the pillar industry of the national economy, enormously impactson national economic development. At the same time, the development of real estatemust be affected by the cyclical fluctuations of the macroeconomic. In recent years,real estate industry develops rapidly since the late1990s, and become the leadingindustry of China’s economic development. On the other hand, It also become one ofkey industries which regulated by the national macroeconomic as the source of theoverheated economy. Under the strong macroeconomic regularly, the propertymarket policies filled one after another. In response of the tightening of the majorcommercial banks’ credit policy, the housing estate had to low its noble head andreturn to rationality. Developer of the total land is controlled, land use structure isimproved, the proportion of affordable housing has increased, and the housing pricealso gradually rises. So, the real estate companies are facing a variety of risks, whichare likely making some uncertain influence one firms. and the financial crisis appears especially Important. Therefore, how to control and prevent the financial risk ofthe real estate firms effectively will become the main content of the paper.Firstly, we put forward the background and significance of the paper, analysisand summarize the classical theories and current status of financial risk in ourcountry and abroad, discuss the concepts, classifications and characteristics offinancial risk, then analysis the current status of financial risk of the real estate firmsand the reasons. Secondly, we select10companies as the study sample from realestate listed firms in our country which based on comparing of the method offinancial risk identification, and select23financial indicators using principalcomponent analysis method to identify the real estate company’s financial risk. By using the software SPSS17.0, we concluded the prediction model of finance risk ofthe real estate firms and give the prediction score. We also choose a real estatecompany as a case to identify the model and analysis its own problems. This modeldoes benefits to control the daily financial risk for the real estate firms. At last thepaper puts forward strategies for controlling and avoiding the financial risk of realestate companies aiming at the problems in the real estate companies.