The Affects Of Commercial Real Estate Corporation’s Financial Situation By Issuing Public Business Trust

China Jinmao holding limited has split one part of its three business sections, the asset of the hotel property and has listed it on the stock exchange of Hong Kong as Jinmao investment business trust in July 2014. Comparing primary financial ratios of China Jinmao holding limited and these ratios of other real estate companies, it proves a lower level of asset earning, asset liquility and higher short-term financial risk of China Jinmao company. But when China Jinmao holding limited issued real estate business trust, its short-term debt paying ability and asset earning ability has increased.To measure the affects of China Jinmao group by issuing Jinmao Imvestment Business Trust, the paper analysizes four business section performance and China Jinmao holding limited’s assets and finds the reason why this corporate issued trust is releasing the value of hotel assets. Then,this paper estimates cost of debt capital and weighted average cost of capital and analysis the affect of trust, but it illustrates real estate business trust has not prominent affect of cost of capital. Finally, this paper use Du Pont method to calculate the affect of sales a bility, asset operation efficiency, and financial leverage.It comes conclusion by all analysis. real estate business trust can not remarkeblely change China Jinmao holding limited’s capital structure, so it can not decrease weight average cost of capital even though it has lower cost than short-term bank debt. Real estate business trust can decrease current liabilities, meanwhile it can increase net working capital and asset turnover ratio,so real estate business trust can improve asset operation efficiency. At the last part, this paper suggests that packing the office building into trust and making this trust as long-term platform for financial activities.