Research On The Models Of Real Estate Companies Of China Under The Macro-control

The blowout of real estate market in2009led to the expansion of sale area and the sharp increase ofhouse price. Under the certain condition of economic revival，the price of the estate has become the mainfoothold of the government’s concern for the people’s livelihood and regulation of asset price. At thebeginning of the year of2010,the real estate market embraced a new round of government regulation, themeasures of which remain basically similar to that of the year of2003and2007，The foundation of whichwas still the restraint of the exploitation of land resources and credit，the increase of purchase cost and thepunishment of developers. The frequent new macro-control policies changed the short-term expectation ofthe market and the consumers began to cultivate a wait-and-see attitude. At the beginning of2011,rhe eightpolicy measures of real estate market that have been decided on the Executive meetings of the statecouncil(hereinafter referred as NATIONAL EIGHT MEASURES) basically determined the macro-controldirection of this year,that is implement the policy of credit tax to combat speculation,promote socialhousing construction to alleviate the rigid demand of the market,to guide the house price to raise smoothlyand to strengthen fundamental housing security.The real estate is still one of china’s most profitable trade and it is also the one that most vulnerable topolicy control. For the moment, if house price and quantity keep going on, the government definitelywill not sit still for this and the recent research by The Ministry of Land and Resources has already showedthat control policies are going out..Land policy and monetary policy are still two main useful tools ingovernment regulation of real estate market. Among the monetary policies,those aimed at need, forexample first payment, there is little room for the adjustment of interest rate and lately China BankingRegulatory Commission says government will further restrain bank loan.The land policy still put emphasis on the crackdown of land hoarding and increase the construction ofsecurity house。The root of the problem in china’s property market is its current ways of economic growthand the financial system and land policy left over by the reformation, which are very difficult for thegovernment to solve. therefore, new policies are very likely to disturb the expectation of property market,but will not change the basic direction and environment of it. And we also believe the most tense,severe and frequent time of policy has past, the market will move according to it inherent law.The central and local government have incessantly enlarged the construction of security housing since2011and implement further monetary tightening in addition to the ‘three limits’, that is the limit onpurchase,loan and price. The central bank of china have already raised the rate of deposit reserve for sixtimes and have increased interest rate twice in the first half year, continuously press on the capital part ofreal estate development enterprises.Under the background of continuous further research,the uncertaintiesare on the rise, and the procurement of capital and land are getting more difficult,we should positivelyadjust strategy to cope with the changing future，especially in exploiting more fund sourcesWith the periodic fluctuation of china’s macro economy，the real estate market experienced bloom andthen bloom with bubble. The law-making of the government in financial，land，trade system etc put morerestraint on trade，the market competition intensified and the consumer become more mature，the processof‘survival of the fittest’in the real estate market has quickened，and the consolidation is happening. Whatis the strategic choice of enterprise under this background？aimed at solving this problem，this paperprovides a way of thinking from the perspective of business mode.The research in this paper adopt the method of normative analysis and case analysis. First of all thispaper choose among many theories the business expense theory and the firm capability theory,from whichI analyze and conclude the theory basis and principle of property business mode：firstly，the dynamiccharacteristics of industrial chain is the theory of our property enterprise’s re-position of their businessmode; secondly, the unity of enterprise’s strategic management is the principle and theory basis of theproper orientation of their business mode.Meanwhile, the business expense theory and the firm capabilitytheory also play a guiding role in a number of specific issues (such as enterprise core competencies, valuechain positioning etc)。Under unified and clear theory basis and principle，this paper build a concreteanalytical framework of business model that suits Chinese property market，that is the five coreinterrelated elements：core competencies, value chain positioning in the Chinese real estate company’sbusiness model, industry linkage chain, business models, and geographical patterns.Then through the case analysis of the business mode of famous domestic enterprise，for exampleWANKE，I conclude how Chinese property enterprise should adjust their business mode and change the trend as domestic property market entered the era of maturity.