Research On Capital Structure Optimization Of China's Real Estate Listed Companies Under The New Deal

The contribution of the real estate industry to China's economic development is very important.The demand for funds in the industry runs through the development of its projects,and the demand is huge.At the same time,in the process of its development,land cost is an important part,so in general,“funds” and “land” are the key to the survival and development of housing enterprises.This article is developed through a combination of theory and case analysis.Firstly,the related theories and the related factors of the capital structure in the real estate industry at home and abroad,as well as the optimization methods and financing strategies are expounded.It can be concluded that the internal and external environment is the two major factors affecting the capital structure of real estate enterprises.In order to solve the problem of capital flow,relying on new financing methods such as real estate trust has become a trend;then this paper expounds the capital structure and financing status of China's real estate listed companies from both internal and external aspects,based on the combination of the status quo and the previous literature.The analysis shows that the factors affecting the capital structure of real estate enterprises are: company size,corporate profitability,operation,debt repayment and development capacity,debt structure,inflation and national macro-control policies.At the same time,it also analyzes the problems existing in the capital structure of China's real estate enterprises.Under the background of the new "financial de-leverage" under the new policy,real estate enterprises have become very difficult in terms of obtaining funds and developing land.It can be reflected in the following points: single financing structure,macrocontrol policies lead to financing difficulties,high asset-liability ratio,high risk of liquid liabilities,and high concentration of equity.In response to these problems,this paper proposes four suggestions to solve the two problems of “funding” and “land”.Secondly,the research method to be used is explained.Finally,Longhu Group is used as a case study object,as a private enterprise.Longhu Group has developed rapidly after listing.Facing the severe environment of financing brought by the adjustment of national policies in recent years,Longhu Group maintains a stable sales performance while maintaining a low asset-liability ratio.Using the good practice of reference,the selected research method is used to judge its capital structure,and its capital structure is found to be in a healthy interval.Combining the proposed system constructed in the previous section,analyzing the measures of Longhu in solving the two key problems of “funding” and “land”,we can find that Longhu Group is very aware of grasping the policy trend.Under the “rental and purchase” policy,Longhu Group will raise funds.The channel turned to long-rent apartment asset class trust.Under the guidance of “de-stocking”,Longhu Group began to enter the stock market.The Longhu Group also focused on the strength of cooperation,turned to cooperative development in land acquisition,and turned to strategic fund financing in capital demand..Through the case analysis of Longhu Group,the paper finally concludes that the real estate listed companies in China can start from the following aspects when solving the two problems of “funds” and “land”: first,reduce the proportion of current liabilities;second Expand financing channels and explore new opportunities;third,seek strategic cooperation and mergers and acquisitions to solve land reserve problems;Fourth,carry out strategic transformation,and acquire and obtain working capital for stock transformation.At the same time,the Chinese market should continue to improve the capital market mechanism and accelerate the construction of a multi-level financial system related to real estate.This paper mainly analyzes the capital structure in a broad sense.It analyzes the capital structure of the company from three aspects: equity structure,credit structure and debt financing level.Under the dual pressure of internal and external troubles,a good capital structure will be maintained.It plays an important role in the development of the company's own operations and in addressing the intensive funding needs.This paper selects the real estate listed company as the object of industry analysis,takes the factors affecting the capital structure as the entry point,combines the existing research results to formulate the capital structure evaluation system,and uses the capital structure optimization model to quantitatively analyze the enterprise.As a private enterprise,Longhu Group is not easy to be among the top ten listed real estate companies in China.It analyzes its capital structure and financing methods and summarizes its good practices in solving the two major problems of capital and land.The enterprise optimizes the capital structure to bring lessons and solves the hot money reserve problem of the housing enterprises.