Research On Optimization Of Deleveraging Scheme Of Real Estate Enterprises

As an important engine of the national economy,the real estate industry plays an important role in improving China’s economic aggregate and people’s living standards.At present,under the new normal domestic economic background,the real estate industry is becoming more and more mature.The real estate industry itself has the characteristics of high capital intensity and long carry-over period,and at the same time,it has the characteristics of slow return and high investment capital.Therefore,it relies on financial leverage to a great extent,which makes high leverage ratio a major drawback of many real estate enterprises,and the asset-liability ratio of quite a few real estate enterprises is above the warning line.However,in the operation mode of excessive financial leverage,real estate enterprises are prone to all kinds of problems.If there is a big financial gap in the enterprises,then the subsequent financial crisis will seriously destroy the real estate enterprises.In order to avoid the above problems in the real estate industry,optimize the high debt problem of the real estate industry,reduce production capacity and inventory as soon as possible,and promote the healthy and orderly development of the real estate industry,China officially issued three red lines for the real estate industry on January 1,2021.Thus,in order to make the real estate industry develop healthily,it is necessary to reduce the financial leverage.Country Garden Holding Company is one of the leading real estate enterprises in China.By analyzing the leverage effect of Country Garden,it can provide some reference for other real estate enterprises of the same type to reduce leverage.Therefore,this thesis uses the case analysis method,starting with the development status of Country Garden and its own operating characteristics,to analyze the specific ways and measures for Country Garden to deal with the problem of high leverage.At the same time,in order to make a more concrete and comprehensive analysis of Country Garden’s own problems,on the one hand,this thesis uses a large number of literatures as theoretical support,on the other hand,it also collects and collates the industry data and financial data of Country Garden in recent years,so as to better analyze the high leverage of Country Garden from the level of combining practice with theory.The research found that: through the analysis of the basic status quo of Country Garden’s operation and capital structure,it was found that there were some problems in the process of using financial leverage,such as improper use of financing channels,unscientific debt structure,weak debt paying ability,etc.,and the causes of these problems mostly came from too long project cycle,too much investment,too loose development environment,etc.Based on this,Country Garden took corresponding countermeasures,such as innovating financing methods,optimizing debt structure,improving debt paying ability,etc.According to the relevant experience of Country Garden’s deleveraging,this thesis puts forward some suggestions for real estate enterprises: carefully acquiring land,improving financing methods,strengthening the correlation between operation and financial leverage,and improving development strategies.The research found that: through the analysis of the basic status quo of Country Garden’s operation and capital structure,it was found that there were some problems in the process of using financial leverage,such as improper use of financing channels,unscientific debt structure,weak debt paying ability,etc.,and the causes of these problems mostly came from too long project cycle,too much investment,too loose development environment,etc.Based on this,Country Garden took corresponding countermeasures,such as innovating financing methods,optimizing debt structure,improving debt paying ability,etc.According to the relevant experience of Country Garden’s deleveraging,this thesis puts forward some suggestions for real estate enterprises: carefully acquiring land,improving financing methods,strengthening the correlation between operation and financial leverage,and improving development strategies.