Research On Financing Strategy Of Vanke Enterprises

China’s real estate industry has gone through 40 years since the market had commercial housing in the 1980 s.In these 40 years of development,the real estate industry has developed rapidly and has become an important pillar industry of our national economy.Because the real estate industry is speculative and easily leads to systemic financial risks,it has always been one of the hot topics of concern and research by capital markets and research scholars.Since the 19 th National Congress of the Communist Party of China,the central government has proposed to insist on "a house is used for housing,not for speculation",to accelerate the establishment of a housing system with multi-subject supply,multi-channel security,and simultaneous rent-purchase,which means that the real estate industry has entered a new era.This article is divided into five chapters.Based on the domestic and foreign research achievements,this article first sorts out the domestic and foreign real estate financing research results and the theories needed.Secondly,choose Vanke enterprises that have more innovations in financing methods and take the forefront of the industry as a case study object,and study Vanke’s financing strategies in stages according to the company’s life cycle theory and knowledge about capital structure.This paper uses literature research,case study research methods,survey analysis method.By longitudinally analyzing the changes in the financing strategies of Vanke enterprises in different development periods,it can be concluded that the significant characteristics of the financing strategies used by Vanke enterprises in the initial stage,growth period and maturity period of their development.And by horizontally comparing the similarities and differences between the financing strategies of Vanke and other leading housing companies such as Poly and Greenland,the analysis shows that Vanke’s financing strategy has advantages over other housing companies.This article innovatively uses the capital structure as a research indicator to study financing strategies,and explores the contents of financing strategies and reasonable capital structures by comparing financial indicators.In addition,this article uses the weighted average cost of capital to quantify the effectiveness of financing strategies.The study found that Vanke’s startup stage is a sound financing strategy,the development stage is an aggressive financing strategy,and the mature stage is a diversified financing strategy.Finally,two conclusions are drawn: First,diversifiedfinancing strategies bring various advantages to Vanke;second,choose financing strategies to consider the life cycle of the enterprise and the characteristics of its own financing needs.And take advantage of the success of Vanke’s financing in all stages,thus bringing some enlightenment to listed real estate companies.This article comprehensively analyzes the financing strategy of Vanke,and hopes to play a good role model for the financing of China’s housing companies and real estate industry.