Analysis on Expansion Risk of Chinese Real Estate Public Companies and Their Financial Strategy

摘要

At present, in the Chinese Real Estate market, real estate developers increasingly focus on the company's development model and financial strategy. Chinese real estate industry has been recognized as one of the highest risk industries and how to avoid the risks is the problem that the property business has to consider when to choose competitive strategies. Corporations on financial strategy are profound impacts on the competitions of enterprises and their values. The constraints of all this is the limit rate of expansions in the real estate industry. So this paper is based on the financial characteristics of Chinese real estate industry, focusing on the Z-score formula for predicting bankruptcy, and taking the empirical case analysis of Poly Real Estate Group Co. Ltd. According to Z-score, adjusting public company's financial strategy and following rational financial advice are useful to reduce financial risk and maintain stable expansion.