The Reasearch Of Investment Returns And Risk Management Of CRCP Estate Project

After joining the WTO, the Chinese Government clearly stated the "Going Global" opening strategy and adjust the foreign economic development strategy of’ "Attracting Foreign Investment "-oriented’to the strategy integrating "Attracting Foreign Investment" with "Going Global", which not only benefit to the development of the Chinese economy but also much better to the international economic cooperation between China and the global. In the ever-changing international and domestic economic environment situation, how to seeking the internationalization strategy of the company, enhancing the international competitiveness and achieving the profit have become the major issue in the enterprise’s reform. Cross-Border Merger and Acquisition, overseas resources and infrastructure investment and development of the real estate will become the priority in the Chinese enterprises’internationalization strategy; and the development of real estate in the preliminary stage economy of emerging countries will become a main field in which the Chinese enterprises to invest.This thesis, based on the Chinese enterprise’s investment to the overseas’real estate, study the investment benefit and risk management of the project conducted by China Railway Construction Group (CRCG) from the point of the investor. Through analyzing of the basic situation of the project, the real estate market investigation, project revenues, costs, profits, cash flow, project Net Present Value (NPV), investment return period, funding and arrangement, sensitivity analysis, income risk, policy risk, currency risk and marketing risk, it come to a conclusion that, in this project, the opportunity outweigh the threat as well as the strength is greater than the weakness. Meanwhile, deriving from a financial analysis, the indicators of the rate of profit, net present value (NPV) and return of investment (ROI) are performance well, which show that this project has great investment potential.Through comprehensive analysis, successful implementation of the project will not only bring a great economic benefit to the enterprise but also benefit to China Railway XX Group entering into the field of infrastructure in the Central Province of the Independent State of Papua New Guinea (PNG), and which also will have a great significance to China Railway XX Group to layout its overseas’investment and the real estate in PNG in particularly. This thesis is based on the investment decision analysis on the specific real estate and I hope that it can provide a reference for the investment decision of Chinese enterprises’ oversea real estate projects.