A Research On The Chinese Real Estate Listed Companies’ Financial Risk Pre-warning

With the gradual development of China’s market economy, enterprises are facingmore complex economic environment, the risks attendant. In a lot of risk faced by theenterprises, the financial risk is the most direct, is relatively easy to quantify the risk.Use of enterprise financial crisis early warning model, through the analysis offinancial factors and non-financial factors of enterprise the overall evaluation of thefinancial situation of the enterprise, early warning of the financial risk of the businessenterprise, help enterprise managers and stakeholders well in advance of the measures,reduce unnecessary losses. In recent years, the development of China’s real estateindustry is very fast, the relevant government departments also actively introducedregulatory policy, fast growth to control prices. The basic characteristics of the realestate business is the large initial investment, long payback period. Moreover, China’sreal estate enterprise also has its own funds less, mostly rely on bank loans, assets andliabilities rate characteristics, its financial risk compared to other industries greatly.Based on the real estate enterprises as the research object, carries on the analysis,prediction of the industry’s financial risk, it is necessary for enterprise management,stakeholders are.In this paper, the writing is based on summarizing the previous studies on,starting from the current situation of China’s real estate enterprises as well as the basiccharacteristics, reasons for the formation of financial crisis and the characteristics ofreal estate enterprises. Then, using the relevant data to establish a suitable for thefinancial crisis early warning model of China’s real estate enterprises.This paper is divided into five parts: the first introduces the background andsignificance of this study, related research on domestic and foreign financial earlywarning analysis, and introduces the research methods, content and innovation. Thesecond part of this article writing theory of financial crisis early warning of financialcrisis are introduced, including the content and form of expression, the formation ofthe reasons as well as the financial crisis early-warning index and research methodsrelated theory. The third part is the current development of China’s real estateenterprises and basic characteristics are introduced, reasons for the formation of the financial crisis and features. The fourth part is a case study of the establishment ofearly-warning model, this study selected18significant indexes, using the method ofprincipal component analysis, the model of a X fraction, and tested using the testsample data accuracy of the model, the model with the rate of accuracy is high, cancarry on real application. The fifth part summarizes the conclusions, and proposesrelevant suggestions.