Problems and Countermeasures of Real Estate Enterprises’ Financing Difficulties-Taking Vanke as an Example

Abstract

With the continuous progress of reform and opening up policy, our country's real estate industry has been developed continuously. As an important pillar industry, the existence and development of real estate enterprises play a very significant role for the stability of China's capital market and the national economy. For real estate is a capital-intensive industry, that's the reason why satisfying the capital needs has become the primary problem during its progress, especially in recent years. In the past few years, the government has introduced a series of regulatory policies that have restricted the financing channels of real estate enterprises. In view of this, this article explains the basic status of financing for real estate companies, and proposes existing financing problems and solutions based on Vanke's situation. With its strong promotion and practicality, this article aims to provide financing strategies for Vanke while providing additional financing strategies to other real estate companies in the same industry, which inspires to help solve the problems of financing difficulties for real estate companies.

The Existing Crisis of China's Large Real Estate Enterprises and Corresponding Amelioration Strategies Based on Evergrande and Vanke

“…They stressed the importance of the existence and development of real estate enterprises to the stability of China's capital market and the stability of the national economy. In addition, they put forward the solution strategy with solid promotion and practicability because of the government's series of regulation policies restricting the financing channels of real estate enterprises, combined with the basic situation of real estate enterprise financing [3]. Evergrande Group has for years relied on highly leveraged operating conditions to rapidly expand its assets.…”