Research On Financing Strategy Of Real Estate Enterprises Based On Life Cycle Theory

With the high-speed operation of the market economy,the domestic real estate industry has developed vigorously.As the leading industry of China's national economy,its development is closely related to the stability of people's living standard and economic order.The real estate industry is a capital-intensive industry,which has the characteristics of large early-stage investment,long investment cycle and high investment risk.The capital raising and operation always exist in each stage of enterprise development,and whether the financing problem can be effectively solved is related to the survival and development of real estate enterprises.However,with the launch of a series of national macro-control policies,real estate enterprises,which establish bank loans as the main financing method,are facing heavy financing pressure,and the financing situation of China's real estate industry is not optimistic.Therefore,the development of financing channels for real estate enterprises and the formulation of scientific and effective financing strategies are related to the healthy development of China's real estate industry and the steady growth of the national economy.This article first introduces the research background and significance,research contents and methods for the instructions,through to the domestic and foreign research results for reference,combining the theory of finance and the life cycle theory,using the research method of combination of theory and case analysis to our country real estate industry representative China Vanke company as the research object,first introduced the basic situation of Vanke company,then to Vanke company on the development history of 35 years of the life cycle of division,divide the entire lifecycle of Vanke company for three phases,namely 1984-1994 is the initial stage,From 1995 to 2004 is the growth stage,from 2005 to now is the mature stage.And different life cycle stages of Vanke company financing strategy were studied,respectively for each stage Vanke company facing the internal and external financing environment are analyzed,and then to Vanke company in different life cycle stages of financing strategy choice illustrates,more traditional financing strategies,in their initial Vanke shall give priority to with endogenous financing,equity financing is complementary;in the growth stage,Vanke adopts a prudent financing strategy,with equity financing as the main part and debt financing as the auxiliary part.in the mature stage,Vanke's financing strategy has become more diversified,with debt financing as the main method and equity financing as the auxiliary method,as well as merger and acquisition,cooperative development,overseas financing and real estate investment trusts.Then the financing strategies of Vanke in different life cycle stages are evaluated and several conclusions are drawn: excellent operating performance is the foundation of enterprise capital operation,financing structure should be compatible with the enterprise life cycle,at the same time should pay attention to the establishment of a diversified financing system.At last,the paper draws several inspirations on the development of financing strategies for real estate enterprises in different life cycle stages: the financing strategies of real estate enterprises should adapt to their life cycle stages,and the development of financing strategies should pay attention to the differences among different enterprises.Diversified financing strategies are conducive to the diversification of financing risks.It is hoped that the above research can provide some inspirations and Suggestions on the formulation of financing strategies for enterprises in the same industry.