A Study On The Financing Strategy Of YD Group Listing In Hong Kong

Along with the reform of China’s market economy system and promotion of the economic restructuring policy,the real estate industry has made an extraodinary achievement.China’s real estate industry has developed “wildly” in the past decades,as a result,the overcapacity of real estate nationwide comes out.The central and local governments and relevant departments have issued a series of regulation policies,trying to guide the industry back to a healthy and sustainable development road.In addition,the real estate industry belongs to capital intensive industry,and its development mostly relies on external financial support.But for a long time,China’s real estate enterprises mainly rely on debt financing to raise funds,especially bank loans.Therefore,China’s real estate enterprises have always been beset by single source of funds,financing difficulties and other issues,especially private ones.Under the circumstances,this paper combines the Hong Kong IPO case of YD group with theoretical knowledge related to corporate finance and financial management,starts from the problems that real estate enterprises listed in Hong Kong dealing with,takes same key issues during the process of YD group’s IPO in Hong Kong as the research object,and mainly focuses on the analysis of the financing strategy of YD group through the analysis of relevant policies,the actual case,all kinds of data and charts.Meanwhile,it carries out targeted research on the strategy and suggestions of listed site and ways selection,the standard of market value,the optimization of business structure between affiliated enterprise and the corporate governance structure of the internal control system and financial management system,reorganization of real estate sector assets,and effective building strategy of overseas red chip architecture.From the case analysis based on YD group listed in Hong Kong,we can find that in the financing difficulties and restrictions of the environment,whether the private real estate companies can list in the Hong Kong market successfully and finance continuously in the international capital market after IPO or not,the key point lies in the enterprise itself.Before listing,they must strengthen the internal corporate governance structure and management level,raise the level of enterprise profits.In the process of listing,they should correctly deal with the company’s equity and property rights structure,arrange the reorganization plan rationally,and avoid legal risks and accounting risks.In the meantime,they should get funds from the capital market equitably with legal compliance and professional management ability in order to promote the building of effective management mechanism and teams,create a good corporate brand image,form a virtuous circle of financing and sustainable development,and realize these strategic development goals.The author hopes to provide a reference for the companies in the same industry by having a comprehensive case study of YD group financing in Hong Kong.