The Financing Model Difference Between Poly Development and Country Garden

Abstract

As a matter of fact, real estate is one of the pillar industries of economic development. As an asset-intensive industry, the development of real estate needs a large amount of effective capital investment, and how to obtain and rationally use funds has become the top priority. The case analyzed in this paper is the financing mode difference between two listed real estate enterprises, Poly Development and Country Garden. Through the analysis of some specific financial indicators, the different financing modes of these two companies are studied, so as to provide reference significance for the financing of future real estate enterprises. Finally, an important conclusion is drawn: real estate companies should pay great attention to whether the debt ratio is matched with their own repayment ability, otherwise the liquidity problem may lead to the company's capital turnover difficulties and be unable to operate, and the corresponding economic system support can improve the status quo. This research helps to provide lessons and solutions for real estate financing.