Research On The Causes And Responses Of The Liquidity Crisis Of Real Estate Enterprises

In the second half of 2021,the real estate industry frequently explodes,and negative news such as debt default and credit rating downgrade occur frequently.Since the liquidity crisis of Evergrande broke out,many real estate enterprises have experienced liquidity shortage one after another.The liquidity problem has gradually evolved from an individual problem to an industry problem.As a pillar industry of the national economy and a key link of the domestic economic cycle,the stability of the development of the real estate industry is closely related to the stable operation of the economy and the stable development of the society.Taking Evergrande as the case study object,this paper makes an in-depth analysis of the causes of the liquidity crisis of real estate enterprises,aiming to find the risk points existing in the operation and management of enterprises,and provide adjustment directions for real estate enterprises that have not yet fallen into the liquidity crisis.At the same time,this paper also combs and analyzes various measures taken by Evergrande before and after the liquidity crisis,in order to provide reference for real estate enterprises to deal with the liquidity crisis.After sorting out the history of the liquidity crisis of Evergrande,this paper found that Evergrande had experienced at least three rounds of liquidity pressure before the outbreak of the crisis.The reason for the outbreak of the liquidity crisis was the change of external financing environment,which was also the most direct reason for the outbreak of the liquidity crisis of Evergrande.In addition,Evergrande liquidity crisis is also affected by a variety of factors.From the perspective of internal factors,including the consumption of liquidity by the diversified industrial layout with low investment efficiency,the occupation of funds caused by land hoarding and gambling value added,the blind confidence of the management in the market judgment leads to the enterprise missing the optimal transformation period,the huge risk exposure caused by disorderly capital expansion,and the crisis of trust caused by the profit-making behavior of senior executives.From the perspective of external factors,including policy tightening financing difficulty,industry downward sales difficulty,advance funds supervision strengthened,frequent negative news of enterprises,etc.Evergrande has taken a series of measures to deal with the liquidity crisis.From the perspective of response effect,the measures around "restore and improve the endogenous hematopoietic capacity of enterprises" and "reduce the leverage ratio of enterprises" are helpful to resolve the liquidity crisis;The measures around the "expansion of debt financing" can delay the outbreak of liquidity crisis,but it can not fundamentally improve the liquidity situation of enterprises.Therefore,in order to improve the liquidity situation and avoid the liquidity crisis,the real estate enterprises should adjust their management mode in time and strive to improve their anti-risk ability.Once caught in the liquidity crisis,the enterprise should start from the introduction of equity capital,boost market confidence,improve the enterprise hematopoietic ability to enhance the crisis repair ability.Reviewing the whole research,the main contributions of this paper are as follows: First,it introduces the liquidity crisis from financial institutions to real estate entities and promotes the research on the liquidity crisis in the real estate industry;Second,the research on liquidity crisis has been expanded from pre-identification and prevention to post-response,which has enriched the research content of liquidity crisis.