A Study On Risk Warning System Of Xin Hua Group Based On Financial Analysis

As is known to all, China’s real estate market has experienced a rapid growth phase.High prices have been driving the development of national economy, but have far beyondthe ordinary people’s buying power at the same time. Therefore, to ensure the livelihood ofthe people, our government has issued "the credit limit for purchasing","tax reform", and"down payment regulation" on the investment real estate demand. On March1,2013, thestate council general office issued a notice about to Continue To Do A Good Job Of TheReal Estate Market Regulation, and issued "The Five Rules". Up to this point, the toughwar has been completely launched about real estate control in2013, more than10provincesand cities have issued detailed rules. In this regulation situation, part of domesticenterprises mainly in residential real estate began to adjust the strategy to enter the field ofindustrial estate. Financial analysis and building a financial risk warning system on thisbasis for XinHua Group mainly in industrial estate to timely find and defuse risk existing inthe management becomes of great significance.Needless to say, financial analysis and financial warning system is a systemengineering. On the basis of industrial estate theory, financial analysis theory, financial risktheory and current situation, this paper attempts to analyze XinHua group’s financialsituation from the angle of financial indicators and special financial analysis. At the sametime, based on the financial risk warning theory and the actual situation, the article analyzesthe XinHua group’s financial warning system, mainly from the construction principle, thechoice of the financial risk signal, index determination, analysis method, modelconstruction and response, warning elimination. Finally, on the basis of comprehensiveanalysis of financial status and warning system, this paper will propose three suggestions toensure the risk warning system be more effective: organizational structure, internal controlmechanism and information security mechanism.