Advances in Economics, Management and Political Sciences

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Proceedings of the 7th International Conference on Economic Management and Green Development

Series Vol. 36 , 10 November 2023


Open Access | Article

Comparative Analysis of Financing Strategy Differences Between Vanke and Merchants Shekou Real Estate Companies

Jinjia Bai 1 , Junyi Wang * 2 , Jianing Xue 3
1 The Affiliated Hongqiao High School of Hebei University of Technology
2 East China University of Science and Technology
3 Tianjin No.21 High School

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 36, 24-30
Published 10 November 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Jinjia Bai, Junyi Wang, Jianing Xue. Comparative Analysis of Financing Strategy Differences Between Vanke and Merchants Shekou Real Estate Companies. AEMPS (2023) Vol. 36: 24-30. DOI: 10.54254/2754-1169/36/20231781.

Abstract

Contemporarily, China's real estate has been boosted dramatically, attracting many investors to participate. Although the real estate industry experienced a long winter during the three-year epidemic, the rapid recovery of the real estate market began with the liberalization of the epidemic. The overall scale of China's real estate continues to grow, and it has become the largest real estate industry in the world. At the same time, with the rapid development of real estate, many problems also arise spontaneously. This paper mainly uses the method of case analysis to analyze the financing situation of REITS of two real estate enterprises, Vanke and Shekou Merchants. First, the financing motivation of the two companies is analyzed, and second, the project participants, underlying assets, and transaction structure of the two companies are analyzed. Then, the case is further analyzed, including the financing cost, the financial situation of the enterprise, the risk level, and other aspects. Finally, the financing effect of the two companies is analyzed, including the reduction of comprehensive financing cost, the increase of cash flow and the improvement of capital structure, etc.

Keywords

financing, bank loans, cash flow, leverage ratio

References

1. Tang, H.: Comparative analysis of financial strategies between Vanke and Poly Real Estate (Doctoral dissertation, Xiamen University) (2014).

2. Application Analysis of Financial Leverage Analysis Method in Vanke Company https://card.weibo.com, last accessed 2023/4/21.

3. Wang, P.: Analysis of REITs from a Financing Perspective - Case Study of REITs in China Merchants Real Estate (Doctoral dissertation, Nankai University) (2011).

4. Wang, Y.: Risk Assessment and Prevention of Real Estate Investment Trusts (REITs) (Doctoral dissertation, Zhejiang University) (2019).

5. Zhang, L., Wang, L.: Risk application research on risk warning mechanism in organizational crisis management–taking Vanke Real Estate Co. Ltd., as an example. Chaos, Solitons & Fractals, 89, 373-380 (2016).

6. Zhu, Y.: Research on the effect of working capital management of real estate enterprises under asset light operation mode: taking Vanke as an example (Doctoral dissertation, Donghua University) (2018).

7. Kong, Y.: Research on the Effect and Risk of Asset Securitization of Final Payment for House Purchase by Vanke Real Estate. Nanjing University of Posts and Telecommunications (2022).

8. Zhang, J.: Analysis of the Financing Motivation and Effect of REITs in China Merchants Shekou Industrial Park (Master's Thesis, Guangdong University of Technology) (2022).

9. Zheng, K.: Research on Diversified Financing Strategies of Real Estate Enterprises in China-Taking Vanke Company as an Example (Doctoral dissertation, Southwest University of Finance and Economics) (2022).

10. Tian, J., Liu, Y.: The problems and countermeasures of cash flow in real estate enterprises. Financial and Accounting Communication: China 9, 2 (2012).

11. Yao, J.: Analysis of Cash Flow Quality in Real Estate Enterprises - Taking Vanke Enterprise Co., Ltd. as an Example University of International Business and Economics (2013).

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 7th International Conference on Economic Management and Green Development
ISBN (Print)
978-1-83558-093-6
ISBN (Online)
978-1-83558-094-3
Published Date
10 November 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/36/20231781
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated