Analysis of Financing Mode of Real Estate Enterprises: Taking Evergrande and Vanke as Examples

Abstract

The development of the real estate industry has been increasingly restricted, especially after the novel coronavirus. In this case, it restricted development trend is more obvious, and some enterprises have fallen very sharply. This paper mainly analyzes the different financing situations of Evergrande and Vanke in real estate companies. To be specific, this study investigates and analyzes the financing mode of Evergrande and Vanke, combined with the real estate financing mode, and puts forward the future prospects and limitations of these financing models. The research methods we adopt are comparative analysis method and experience summary method. At the same time, we will analyze the differences between Evergrande and Vanke, and discuss why one of them went bankrupt after experiencing restricted development, while the other was able to continue to survive. According to the analysis, it is related to the financing methods they adopted. These results shed light on guiding further exploration of the real estate in the more volatile situation the most suitable financing model as well as policy implementation.