Research on Measures for China’s Real Estate Enterprises under the Background of ‘Three Red Lines’ Policy

DOI

10.2991/aebmr.k.220307.430How to use a DOI?

Keywords

Real estate industry; Three red lines; Financing; Cash flow

Abstract

Since 1980, houses have been defined as commodities, and Chinese real estate has officially become an industry. On August 23, 2020, “a key real estate enterprise fund monitoring and financing management rules “which is also called “three red lines” have been formed. This article explains the constraints these rules exerted on the real estate firms by presenting the specific content of the “three red lines”, illustrates the two main effects of the “three red lines” which are reducing the scale of financing and increasing the cost of financing for real estate firms, demonstrates and compares two firms’ operational strategies and their current situation, and finally gives recommendations about financing strategies to firms belonging to different groups classified by the “three red lines” separately. The suggestions mainly focus on ways to improve liquidity and turnover rate. It is hoped to promote the stable and healthy development of the real estate industry under the background of the “three red lines” policy by delivering this article.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Jiasun Liu
PY  - 2022
DA  - 2022/03/26
TI  - Research on Measures for China’s Real Estate Enterprises under the Background of ‘Three Red Lines’ Policy
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 2642
EP  - 2647
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.430
DO  - 10.2991/aebmr.k.220307.430
ID  - Liu2022
ER  -