Examining on the Impact of Government Policies on Real Estate Enterprises

Abstract

Contemporarily, governments of all countries have made relevant policy adjustments for their real estate industry to adapt to the current global economic development and national conditions, so as to achieve the stability of the development of real estate enterprises, the healthy development of the domestic real estate industry and improve risk prevention. This study will take the "Three Red Lines of real estate" issued by China as an example to analyze the impact of central enterprises and private enterprises under the state-owned system and system after the policy adjustment in the past three years and calculate the required data through the annual financial statement data, calculation of leverage, responsibility, profit and DuPont analysis. Afterwards, the development and risk situation of private enterprises and central enterprises under the Chinese system are analyzed, and reasonable suggestions are given on the impact of government policy adjustment on central enterprises and private enterprises, so as to maintain the stable development of real estate under the communist economic system and provide reference for countries with the same political system.