Large-scale Real Estate Corporate Finance Management Mode Research

Existing research more on real estate corporate finance issues, but more thanbiased perspective of financial institutions, For example, how to carry out the realestate corporate finance and risk control, and how to carry out innovative real estatefinancing products and content. And the angle of departure from the real estatebusiness management, especially for large national real estate corporate finance isrelatively small. The purpose of this research is to investigate how the large real estatecompanies looking for an effective finance management mode, After the study, theinnovation of this paper is that from the point of view of value creation and capitalstructure theory to explore the establishment of a value-creating finance managementmode. The financing model is more in line with the development strategy to achievethis mode compared to the original cost of general enterprise established to control forthe target. In this paper the main application of the Capital Asset Pricing Model, thetheory of capital structure theory, and the weighted average cost of capital, throughthe gradual optimization methods to find the financing structure optimization mode.Meanwhile, through the analysis of the interaction of HK and RMB financing in theeffect of exchange rate fluctuations, interest rate differentials and tax shield, balancethe cost of financing the influencing factors. Try to establish a balanced equationmodel and to explore the company’s response to the changes in the structure of thedebt financing currency ratio.Value-creating finance management mode, explore ways through our financingcapabilities, centralized management, channel management, product management,platform management to adjust the financing structure. The balanced development ofthe capital structure, financing capability, strategic investment. Finance managementgoal setting to optimize the financing structure, reduce the weighted average cost ofcapital, while ensuring the safety of the financing cash flow, enterprise value creation.Finally, based on the practical experience of the large real estate companies,summed up the mode of financing management practices, as well as somesuggestions.