Study On The Financing Difficulty Of China's Small And Medium-Sized Real Estate Enterprises And Its Coping Strategy

The real estate industry——an important component of the overall national economy——plays an indispensable role in promoting China's social and economic development. Among the numerous real estate enterprises, the small and medium sized real estate enterprises (real estate SMEs) are taking the absolute majority. Therefore, whether or not these real estate SMEs could grow in a continuous and healthy way remains a key study subject which matters the sustainable development of China's real estate industry.The fact is that the real estate SMEs in China are not able to grow bigger and stronger. The bottle-neck which restraints these real estate SMEs is that these enterprises have difficulty in financing. The reasons resulting in this difficulty are as follows:On one hand, these SMEs are mostly weak and lack required management rules and regulations. Meanwhile, they cannot provide sufficient guarantee for raising fund. On the other hand, the capital market in China is not mature so far, which cannot act as an efficient financing channel. The bank credit still plays the main role in providing finance for the whole real estate industry, with no other financing sources as compliments. This will not only easily break up the capital chain of the SMEs, but also force the real estate risks to concentrate on the commercial banks, thus, it poses potential threat to the smooth development of the national economy. Therefore, how to shake off the financing difficulty of the real estate SMEs and locate the coping strategy is a key theoretical issue that worth the study.This thesis firstly summarizes the development characteristics of China's real estate industry, and systematically outlines the current situation and achievements of China's real estate industry. It utilizes abundant information and data to make a scientific definition on how to identify the study object of this thesis——real estate SMEs. Based on these, the thesis analyzes the current financing situation of China's real estate SMEs. It finds out that the inner-sourcing finance still dominates the SMEs'financing, and the over-reliance on bank credits is the main feature of outer-sourcing finance. Plus other industry and regulation restraints, the SMEs finally stuck in financing difficulty. On the basis of systematic analysis and scientific proof, the thesis introduces several financing models targeting at the medium-sized real estate enterprises and the small-sized respectively, such as investment trust, investment fund, private-equity fund, co-development, mortgage financing, etc., in expectation of alleviating the financing difficulty of the real estate SMEs.