Research On Financing Management Of Radical Expansion-type Housing Enterprises

The real estate industry,as a pillar industry of the national economy,has huge investment,slow recovery and huge rewards.Meanwhile,it is accompanied by high risk.The production and operation of real estate enterprises are extensive and complex,requiring large cash flow and large scale of financing.The assets and liabilities rate of real estate enterprises are generally higher than those of other industries.And because of the long production cycle of the project,there will be a series of risks such as macro policy risk,financing risk,liquidity risk and so on.This is a great challenge to the real estate development enterprises.In recent years,the real estate market has entered a stable rising period.In order to pursue rapid expansion,some enterprises have taken a more radical development model,and have obtained a large amount of land reserves,and the scale of the enterprises has expanded rapidly.Sunac China Holdings Limited is a Hong Kong listed mainland real estate development enterprise.In 2016,through a variety of financing channels,the amount of loans increased by 169%,and thus accumulated a large amount of land reserves.In this expansion model,the enterprise also changes,the profit margin level is reduced,and the financial risk is increased.It is of great significance to study such real estate enterprises and understand the operation and development of their funds to prevent the real estate market risk.This paper,taking Sunac as an example,analyzes the financing characteristics of radical expansionary real estate enterprises from the perspective of enterprise financing,and analyzes the influence of radical financing expansion strategy on short-term financial changes and stock prices:(1)Large scale real estate development enterprises should adopt multiple financing methods and exert various advantages in various ways in the aspects of cost,restriction and convenience,which can effectively reduce the limit of single financing mode.The risk of manufacturing;(2)Financing strategy of the real estate enterprises should be matched by the expansion strategy of the enterprises.The radical real estate enterprises,especially the enterprises with M & A strategy,need a lot of financing to realize the merger and acquisition opportunities,and the guarantee of the capital scale is very important to the future development of the enterprises.(3)The rise of the financial expenses that the radical Housing enterprises need to pay attention to,needs to be in the interest of the profit.Within the range of growth.(4)A reasonable financing way will bring a positive effect in the stock market.In order to solve the financing problem of real estate enterprises,while trying to improve the comprehensive ability of enterprises,the real estate enterprises should seek a new model of innovative financing.It is the only way to diversify the road of financing,and cooperate with the supervision department to do a good job of risk prevention and risk early warning.At the same time,the government should actively develop the protection of the real estate trust fund,accelerate the promotion of the development of the real estate securitization,and constantly improve the relevant laws and regulations of real estate financing,and promote the continuous improvement of the real estate financing environment.