Evaluation of a Real Estate Listed Company's Financing Ability Based on Financial Indicators

With the arrival of China's Age of Big Finance, the traditional mode of operation of the securities industry changed dramatically at the same time. It also brings a promising future to real estate financing. The government is determined to control the credit risk of real estate in the 2014 NPC and CPPCC Sessions. The CBRC officials also said that real estate credit should be tightened. In March of this year, the CSRC gave permission to some real estate companies' refinancing applications, which in turn injects fresh blood into real estate financing. Under the circumstance that the dominant direction of government policy-driven housing market regulation has stabilized, financing ability directly determines the strength of the real estate business exploration and the speed of development. Based on this, this paper:(1) uses empirical data of China's A share real estate listed companies in 2012; (2) studies enterprise's financing ability through the factor analysis method; and (3) analyzes and evaluates sample firms' financing ability. It then proposes appropriate financing strategies and suggestions for improving the current strategies.