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Research Paper | Economics & Finance | China | Volume 10 Issue 3, March 2021

Research on Capital Structure and Financial Risk of Real Estate Companies in China - Based on the Case Analysis of Poly Real Estate

Qian Zhang

Abstract: With the acceleration of urbanization, real estate is an industry that affects the national economy and people's livelihood. However, the real estate industry faces a common problem: how to optimize the capital structure to improve corporate benefits and reduce financial risks. In this paper, the characteristics of the capital structure of China's real estate industry and the risk caused by the relevant indicators are analyzed. Then, taking Poly Real Estate as an example, this paper analyzes the relevant data of the company in 2016, 2017 and 2018, and concludes that the equity capital ratio of the company keeps rising, which can reduce its risk but cannot eradicate it. In addition, the increase of asset-liability ratio and net liability ratio will reduce the return on investment of investors, and thus increase the risk of listed real estate enterprises. Finally, in view of the development status of Poly Real Estate listed companies put forward several suggestions for optimization.

Keywords: real estate, Poly Real Estate, Capital structure, Financial risk

Edition: Volume 10 Issue 3, March 2021,

Pages: 1112 - 1114