Research on Financial Risk of Listed Real Estate Enterprises in the Pearl River Delta - Based on Factor Analysis

DOI: https://doi.org/10.62517/jes.202602125

Author(s)

Li Yating*, Yu Yisong, Ding Minyao, Huang Jinkang

Affiliation(s)

Guangdong Ocean University, Zhanjiang, Guangdong, China *Corresponding Author

Abstract

Against the backdrop of macroeconomic transformation, policy tightening, and shrinking demand, China's real estate industry has entered a period of profound adjustment. Developers in the Pearl River Delta region are facing multiple challenges, including declining investment, weak sales, and intensified financial risks. Based on data from 32 A-share listed companies in 2023, this study conducts KMO tests and Bartlett tests on 14 key indicators (such as long-term debt-to-asset ratios and current ratios), followed by factor analysis to construct a four-dimensional risk model encompassing profitability, solvency, operational status, and growth potential. Factor scores rank real estate companies and categorize them into four quartiles: safe zone, observation zone, warning zone, and danger zone. The study draws eight core conclusions: companies in the safe zone should optimize their capital structure, those in the observation zone need to strengthen cash flow management, companies in the warning zone should advance debt restructuring, and those in the danger zone must implement strategic transformation. Through systematic safeguard mechanisms—including institutional frameworks, technological applications, regulatory norms, and mindset shifts—the framework is transformed into actionable guidelines for enhancing financial risk management standards.

Keywords

Real Estate Enterprises; Financial Risks; Factor Analysis; Financial Ratios

References

[1]Chen Xikang, Yang Cuihong, Zhu Kunfu, et al. China's 2025 Economic Growth Rate Forecast Analysis and Policy Recommendations [J]. Journal of the Chinese Academy of Sciences, 2025,40(01):140-148. DOI: 10.16418/j.issn.1000-3045.20241225002. [2]Shen Qianqian. Analysis of Causes and Solutions for Financial Risks in Real Estate Enterprises [J]. Enterprise Reform and Management, 2022,16(1):125-127. DOI: 10.13768/j.cnki.cn11-3793/f.2022.0867. [3]Zhang H. Preliminary Study on Financial Risk Prevention in Real Estate Enterprises [J]. Bohai Economic Outlook, 2023, (05):46-48. DOI: 10.16457/j.cnki.hbhjjlw. 2023.05.008. [4]Zhang Chuqi. Financial Risk Identification and Early Warning in Real Estate Enterprises [D]. Chang'an University, 2023. DOI: 10.26976/d.cnki.gchau. 2023.001263. [5]Ouyang Guoliang, Wu Gang, Zhu Xiangbo. Research on Financial Risk Early Warning of Real Estate Enterprises Based on Factor Analysis Method [J]. Social Scientist, 2018, (09):56-63. [6]Zhang H. Research on Financial Risk Early Warning of Real Estate Enterprises Based on Factor Analysis Method [D]. China University of Geosciences (Beijing), 2023. DOI: 10.27493/d.cnki.gzdzy. 2023.0013