Research On Financial Risk Management Of Real Estate Enterprises Based On Supply Side Reform

Since the 90s of the 20th century,the gross national product of China grew rapidly,which has set off a real estate development boom,real estate has gradually become the main support of China's GDP and an important source.After twenty years of glory,the real estate industry of China is subject to poor foundation,late start,non-standard behavior or other reasons,and gradually expose defects into the dilemma.According to the the national real estate development,investment and sales which is released by the National Bureau of Statistics,At the end of 2015,the area of real estate for sale is 718.53 million square meters,which has achieved the highest record,the situation of the third and fourth tier cities is especially grim.Until September 2016,although the area for sale has been reduced to 69612 square meters,the effect of reducing inventory is significant,but the overall market is still in the doldrums.Because of the macro-environment changes and the complexity of the enterprise itself,the financial risks of real estate enterprises are mainly reflected in the four business processes of strategy and budget,financing,investment and operation.In General Secretary of the General Assembly in November 10,2015 Central Economic Conference,the President Xi pointed out that "efforts to strengthen the supply side of the structural reform,focus on improving the quality and efficiency of supply system." The real estate industry as a supply side of the focus areas of ref '··' orm,treating opportunities and challenges,how to develop appropriate strategies to address the challenges of financial risk management,and ultimately to achieve the goals of reducing production capacity,getting rid of leverage,reducing costs,reducing inventory and making up for weaknesses,has become the practical problems which real estate enterprises have to solve.Based on the above background,this paper adopts the special case study method combining theory with case analysis,taking XR Company as an example to expound the financial risk management of the real estate enterprises based on the supply side reform and put forward the corresponding countermeasures.The first part is to summarize the literature review on financial risk management and supply side structural reform,and draw lessons from the theoretical research results such as financial risk management and supply side reform needed in this paper.Secondly,This paper analyzes the characteristics and current situation of the real estate industry in China and the inherent requirements of the reform of the supply side of the industry.And then from the supply.side of the structural reform in reducing production capacity,getting rid of leverage,reducing costs,reducing inventory and making up for weaknesses to analyze the causes of the financial risk management problems of real estate enterprises.Finally,from the general to the individual,select the real estate projects of XR company as a case to reveal the company's financial risk management issues,respectively use effective strategies and budgets,fundraising,investment and operational risk management methods on the financial risk management problems of XR Company to put forward pertinent and effective suggestions,based on the reducing production capacity,getting rid of leverage,reducing costs,reducing inventory and making up for weaknesses,which to improve the effectiveness of the company's supply,highlighting the core competitiveness of enterprises to ensure the sustained and healthy development of enterprises.