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Financing Mode Analysis of Chinese Real Estate Enterprises – A Case Study of Evergrande Group

Published: 25 April 2021 Publication History

Abstract

Chinese real estate industry has gone through a boom period and the growth rate tends to be gentle gradually in recent years. The survival and development of real estate enterprises have attracted extensive attention from multiple sectors of society. A stable source of funds and lower capital cost are crucial to the development of real estate enterprises, choosing financing mode correctly is a necessary condition accordingly. This paper selects Evergrande Group, a leading enterprise in Chinese real estate industry, as the research object to study its financing mode. Firstly, the study introduces the development history and financial status of Evergrande Group and analyzes its financing mode. Subsequently, through comparing the advantages and disadvantages of each financing mode, several problems existing in Evergrande financing mode are summarized: excessive asset-liability ratio, certain blindness in financing, excessive financing cost, certain dependence on bank loans, and excessive current liabilities. Finally, the article puts forward suggestions for improvement are put forward: Evergrande Group should choose a financing mode according to its own situation, avoid blindness; improve its own profitability; expand new financing models, and comply with national policies and market trends.

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  • (2023)The Impact of COVID-19 on Evergrade: A Case AnalysisBCP Business & Management10.54691/bcpbm.v38i.373038(482-490)Online publication date: 2-Mar-2023
  • (2023)Comparing factors affecting Chinese institutional investors’ willingness to pay for green bonds in Beijing, Shanghai, and ShenzhenCogent Business & Management10.1080/23311975.2023.229236511:1Online publication date: 13-Dec-2023
  • (2022)Institutional Investors’ Willingness to Pay for Green Bonds: A Case for ShanghaiJournal of Risk and Financial Management10.3390/jrfm1511050815:11(508)Online publication date: 3-Nov-2022
  1. Financing Mode Analysis of Chinese Real Estate Enterprises – A Case Study of Evergrande Group

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    cover image ACM Other conferences
    IPEC2021: 2021 2nd Asia-Pacific Conference on Image Processing, Electronics and Computers
    April 2021
    1143 pages
    ISBN:9781450389815
    DOI:10.1145/3452446
    Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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    Publication History

    Published: 25 April 2021

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    Author Tags

    1. Evergrande Group
    2. Financing Mode
    3. Real Estate Enterprises

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    View all
    • (2023)The Impact of COVID-19 on Evergrade: A Case AnalysisBCP Business & Management10.54691/bcpbm.v38i.373038(482-490)Online publication date: 2-Mar-2023
    • (2023)Comparing factors affecting Chinese institutional investors’ willingness to pay for green bonds in Beijing, Shanghai, and ShenzhenCogent Business & Management10.1080/23311975.2023.229236511:1Online publication date: 13-Dec-2023
    • (2022)Institutional Investors’ Willingness to Pay for Green Bonds: A Case for ShanghaiJournal of Risk and Financial Management10.3390/jrfm1511050815:11(508)Online publication date: 3-Nov-2022

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