Research On Financial Performance Evaluation Of The Listed Real Estate Companies In China

The real estate industry is one of the important industry drives the growth of GDP in China, contribution and influence to the national economy is growing. It has become one of the pillar industries in Chinese economy. Since2004, the state issued a series of real estate control policies, on the one hand to curb the excessive growth of house prices and unreasonable demands, on the other hand to guarantee the rationality of housing demand. The real estate market is a capital-intensive operation; you need to invest a lot of money. In our country, a large part of the real estate investment comes from the bank’s loans, but as tighter credit of real estate industry, the financial risk of the real estate industry is larger, and the cash flow ability is low. Real estate enterprise should be more in-depth understanding of their own conditions, to establish a reasonable scientific performance evaluation system, based on the evaluation results to adjust the business management strategy in order to enable enterprises to achieve business objectives.The performance of listed real estate company in China has extensive research; evaluation methods based on different research methods are not consistent with the purpose of selection. According to the comparative analysis of various methods, this paper chose the factor analysis method to evaluate the performance of listed real estate company. Combined with the real estate industry’s own characteristics, this paper selected14financial indicators profitability, including shareholder profitability, cash flow, capacity development, operational capacity and solvency in five areas. According to the comprehensive factor score quantifies the company’s financial performance and the performance of all companies were ranked. Finally, we used non-parametric test method to test the differences of company performance between tier and second-tier cities listed real estate company performance.This article selected from2010to2012the average financial indicators of132listed companies in Shanghai and Shenzhen A-share real estate to analyze, and reached the following conclusions:According to descriptive statistical analysis and found that a higher level of profitability of real estate companies, and debt levels are high, but there is a downward trend. According to the results of the factor analysis, a total of six common factors were extracted, each factor reflects corporate performance from different angles, including shareholder profitability, profitability and development ability has the high weight, is the main factor that influences the performance of the real estate industry company, Solvency, cash flow capability and operational capacity is small relative weight, less impact on performance evaluation. With the comprehensive factor score to quantify our real estate listed corporation performance, and the scores of the sort found, In the first row of Huaxia happiness and the last one of Head shares score is larger, the development of China’s real estate industry is not balanced, the difference between the larger industry. Score values in the top15of the real estate company basic is the strong comprehensive strength, and are mostly distributed in Beijing, Shanghai, Guangzhou and other economically developed regions. Because of China’s special regional economy, the country is divided into tier and second-tier cities, using the nonparametric test method test results there is a significant difference between a second-tier cities of the real estate company’s performance.