Study On The Motivation And Performance Of Asset Replacement Of Zhujiang Holdings

China’s real estate industry from once disappeared to now the rapid development is also experienced a long and difficult road of development.Real estate industry is a tertiary industry integrating investment,development,management and service.From the revival of real estate industry in the 1980 s to the rapid development in the 1990 s,and then to the rising housing prices in the 21 st century,the real estate industry has gradually become a great economic growth point with development potential in China.However,its rapid development is accompanied by various problems.Hainan Zhujiang Holdings Co.,ltd.is a typical example.In the face of rising house prices before and after the 2010 government have issued a series of macro-control policies,and releasing the property tax as well as the policies,such as fixed production registration at the same time the central committee also increased the anti-corruption efforts,many speculators are gradually stopped and property speculation began to worry about their housing how to dispose of excess,ready to buy a house at the time a lot of consumer are in a state of wait-and-see,waiting for a drop in prices.Due to the above reasons,the sales volume of refined real estate products in the second half of 2014 of Zhujiang holding dropped sharply,and the inventory in the hands of real estate developers increased greatly.The company’s operating performance in 2015 was more substantial than that in 2014,and financial expenses continued to increase,resulting in continued losses.Put it at risk of delisting.This paper will analyze the causes of asset replacement of Zhujiangr holdings and the impact of asset replacement on its internal to provide some companies with similar difficulties with reference.Through the combination of literature research method and case study method,this paper firstly introduces the background and research significance of the topic of this paper,and analyzes some literature theories related to asset replacement by domestic and foreign scholars,then summarizes and expounds their own views.In the second part,the relevant concepts and theoretical basis of asset replacement are briefly expounded.Again,this paper will elaborate on the specific process of asset replacement of Zhujiang holdings.Then this paper will use the method of event study and financial index analysis to deeply analyze the specific impact of asset replacement on the market performance and financial performance of Zhujiang holdings.Finally,from the above analysis,it is concluded that the market and financial performance of Zhujiang holdingcan be improved after asset replacement in the face of delisting dilemma.In the current economic environment,this paper chose a company in financial distress to analyze asset replacement this way for the company’s financial performance,the influence of the appearance of this with the general financial distress company choose the solution is not the same,this article will asset replacement for the Zhujiang holdings and impact on corporate performance carry out specific analysis on the case,hope to be able to offer for a similar predicament company can draw lessons from meaning.