The Research On Cash Flow Management Of Vanke Company

American financial crisis and Dubai’s financial crisis were closely related to the domestic real estate market bubbles. At the end of the last century, our government put the housing monetization reform into effect. Then, our real estate market maintained a rapid growth momentum in the past few years. To avoid the adverse influence of real estate bubbles on our economy, the government adopted a series of macroeconomic policies, like land supply, bank credit, institutions supervision, industry policy and so on, which seriously affected the turnover of cash flow. In terms of the other aspect, the real estate industry is a capital intensive industry with the character of wide construction area and considerable investment requirement, the whole industry is in the high cash flow risk situation. Currently, many real estate companies’is in the low level of financial management and absence in the forecasting function of cash flow due to the lack of the recognition of the cash flow risk, so that the real estate industry presents the common the grounds of negative operating cash flow. Based on the background, starting with the cash flow indicator by using the information of listed company that have been disclosed, it’s necessary to take Vanke as an excellent cash flow management example for the real estate cash flow study in the condition of the intensive external capital supply.Via summarizing the domestic theory and foreign knowledge related to cash flow risk, this paper takes Vanke for example and analyses the current cash flow status throughout four key elements of flow, process, the flow velocity and the volume of flow. On this basis, the paper assesses the advantages in their cash flow management combined with the detailed discloser data from the financial report. The findings are also robust to point out underlying problems in Vanke’s cash flow management and propose a series of recommendations to improve the company’s cash flow management in depth. The final purpose of the article is that recommendations and conclusions has certain reference value to the other Chinese real estate company.