Research On Financial Risk Control Under The Counter Cyclical Expansion Of XC Holding Group

Since China's housing reform in 1998,the overall cycle of the real estate industry is fast upward,especially in the ten years of the 1998-2007.Because of the sustained high growth in investment and sales of the real estate industry,it is known as the gold of real estate for 10 years.But it is undeniable that along with the improvement of urbanization rate in China,the unilateral rising trend of land prices is being broken,and housing prices are gradually fluctuating.In 2014,the real estate market of our country appeared a obvious decline in sales.The fluctuation of this kind of sales showed that the real estate market of our country has obvious periodicity.The real estate industry cycle in this year is also in a typical recession period,and most of the housing enterprises have adopted the contraction strategy.This is reflected in the decline in the growth rate of investment in real estate development and the decline in land acquisition area of real estate development enterprises.XC holding group has adopted an obvious counter cyclical expansion strategy in this industry cycle.In the same year,it increased its area and amount.Because of the decline in the real estate industry,so the cost of land is low,and the land reserves of enterprises are increasing rapidly.In the last few years,the sales growth of enterprises is obviously faster than the average level of the same industry.However,the financial risks behind counter cyclical expansion are worthy of attention.Because the sales growth of enterprises in the initial period of counter cyclical expansion is slow,but the investment growth rate is high and the financing cost is high,it is easy to appear the problem of insufficient cash flow.This will reduce the solvency of enterprises,lack of liquidity and increase financial risks.This requires that the implementation of counter cyclical expansion strategy requires careful financial arrangements and risk control in advance.Therefore,how to do well the financial risk control under the counter cyclical expansion is a topic worth studying.The financial risk control under the reverse cycle expansion of the XC holding group is a typical case.Therefore,the research on the financial risk control under the reverse cycle expansion of XC holding group can be a reference for similar enterprises in the future,and is of great practical significance to the financial risk control of these companies.This paper studies the financial risk control of XC holding group under counter cyclical expansion.The full text is mainly divided into six chapters.The first chapter is the introduction,which mainly introduces the research background and research ideas of the full text.The second chapter introduces the relevant theories based on this study,mainly the counter cyclical theory and the financial risk control theory.The third chapter expounds the development course of XC holding group,the net sales situation in some years,the main business and the strategic implementation of its reverse cycle expansion,and analyzes the outstanding financial risks that the XC holding group faces under this strategy,and then introduces the financial risk control measures to deal with these financial risks.The fourth chapter mainly analyzes the effect of the financial risk control measures taken by the XC holding group under the reverse cycle expansion.What problems exist in its financial risk control and in which aspects it still needs to be improved.The fifth chapter gives specific suggestions for improvement to reduce the related financial risks of the enterprise.The sixth chapter summarizes the research results and prospects some limitations and shortcomings of this study.