Download pdf
Research on Credit Risk Identification and Management Strategy of Real Estate Supply Chain from the Perspective of Sustainable Development
- 1 Zhongnan University of Economics and Law
* Author to whom correspondence should be addressed.
Abstract
The real estate sector plays a pivotal role in driving economic growth. However, it faces significant challenges related to credit risk and sustainable supply chain practices. The management of credit risk and the integration of Environmental, Social, and Governance (ESG) factors into credit risk assessment have garnered increasing attention. This paper investigates the influence of sustainability practices within the real estate supply chain on credit risk management, focusing on the case study of China Evergrande Group. Through an analysis of Evergrande Group's financial reports and relevant policy changes via literature review and case study methodology, this research delves into the underlying causes of its credit risk as well as its repercussions on the supply chain. The findings indicate that Evergrande Group's high leverage coupled with an aggressive debt expansion strategy has resulted in a heightened accumulation of credit risk amid evolving policies and market conditions. Consequently, it is recommended that real estate enterprises enhance their mechanisms for assessing supply chain-related credit risks, establish early warning systems for potential credit issues, promote information sharing among stakeholders, and refine their contractual agreements and guarantee frameworks to mitigate credit risks while promoting sustainable development within their supply chains
Keywords
Real estate supply chain management, Credit risk assessment, Sustainability practices, Environmental, Social, and Governance (ESG) criteria, Evergrande group
[1]. Shen, L., Zhang, Z., & Zhang, X. (2017). Key factors affecting green procurement in real estate development: A China study. Journal of Cleaner Production, 153, 372-383. https://doi.org/10.1016/j.jclepro.2016.02.021
[2]. Mou, X., & Li, S.-M. (2023). Real estate regulation and default risk on financial lease contracts. Emerging Markets Finance and Trade, 60(3), 617-630.
[3]. Ma, Z. C. (2023). The impact of ESG on the credit risk and financial performance of real estate companies. Modern Financial Guide, 2023(2), 58-62.
[4]. Lamming, R., Caldwell, N., & Harrison, D. (2004). Developing the concept of transparency for use in supply relationships. Journal of Supply Chain Management. https://doi.org/10.1111/j.1467-8551.2004.00420.x
[5]. Zheng, R. J. (2024). A study on credit risk of real estate enterprises from the perspective of suppliers (Doctoral dissertation, Jimei University). https://doi.org/10.27720/d.cnki.gjmdx.2024.000244
[6]. Mou, X., & Li, S. (2023). Real Estate Regulation and Default Risk on Financial Lease Contracts. Emerging Markets Finance and Trade, 60(3), 617–630. https://doi.org/10.1080/1540496X.2023.2228464
[7]. Lu, L., & Keller, A. (2022). Is it China’s Lehman Brothers moment? Unveiling Evergrande debt crisis, financial risks, and regulatory implications. Law and Financial Markets Review, 16(1–2), 133–144. https://doi.org/10.1080/17521440.2022.2150524
[8]. Guo, X. Y. (2023). Research on the capital operation methods and economic consequences of capital occupation in supply chains (Doctoral dissertation, Guangdong University of Finance and Economics). https://doi.org/10.27734/d.cnki.ggdsx.2023.000464
[9]. Wei, S., Liu, H., Chen, X., & Ke, W. (2024). How does supplier integration influence supply chain robustness and resilience? The moderating roles of information technology agility and managerial ties. Information & Management, 61(7), 104028. https://doi.org/10.1016/j.im.2024.104028
Cite this article
Wu,J. (2025).Research on Credit Risk Identification and Management Strategy of Real Estate Supply Chain from the Perspective of Sustainable Development.Advances in Economics, Management and Political Sciences,161,62-68.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content
About volume
Volume title: Proceedings of the 4th International Conference on Business and Policy Studies
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).