| As national economy's cornerstone, the real estate industry sufficient influences national economy's development. The real estate industry is a typical capital-intensive industry, so sufficient financial support is the most important part of this industry. Along with the changing in financing system and government macro control on China's real estate industry, the real estate companies facing more and more serious financial support. How to resolve this problem is the most important question in every real estate companies. At present, real estate companies in China mainly depend on bank loan for financial needs, only a few big companies have just started using public offering, Trust and corporate bond. However, for the real estate companies, especially to the small-and-mid companies, there're only a few financing ways can be used and the amount can be financed is too small compare to bank loan. Therefore Fund, Real Estate Trust and other financial innovations emerge as the times require. According to other countries'advanced financing method, using multi-financing methods can guarantee real estate companies'reliable financial support; more reasonable allocate resources. It's in favor of real estate capital market's formation; increase number of investment options; decrease bank risk.This thesis is aim to compare and analysis main financing methods (except bank loan) can be used by real estate companies in China, and then chooses the suitable financing method for different types of companies and brings forward some suggestions to improve China's real estate financing environment, the detail researches are below:At first, this thesis discussed the real estate industry financing status at present. In this paragraph real estate industry's four characteristics were introduced, which applied the multi-financing method is very urgent to be used in this serious financing situation. To solve this problem, the author fist analyzed the impact to real estate's financing from inter and outer factors, and then explained why outer factors had more impaction. At the last of this paragraph, the author analyzed impact to real estate industry from recent macro factors, and then concluded that real estate companies in China depend on bank loan too much, this is the reason of real estate industry's financing singularity, therefore, to found multi-financing method as soon as possible is the way to diverse real estate industry's financial risk.This thesis's corn part included two parts: First, comparative analyzed several financing methods except bank loan, which focused on public offering,trust, REITs, corporate bond, etc. It is focused on several key financing methods, each other's advantages and problems, and also pointed out which financing methods can be used for which companies. Second, according to the real estate market conditions in Chong Qing, from different development projects, different scale to illustrate the use of various financing methods in practice, moreover suggested to use a combination of financing methods for the financial needs.Finally, according to the actual situation faced by the real estate market, made some suggestions and countermeasures from the government, financial institutions and capital markets to improve the financing environment of the real estate business.Thesis's main conclusions are as follows:1,The uses of financing methods are closely related to real estate companies'projects and size. Different types of projects have different characteristics and the best way of financing, in general, there are more financing methods can be used for luxury real estate projects than commercial projects; the real estate companies of different sizes should use different financing strategies to suit their own needs.2,The ideal situation for real estate financing is to get high credit limits from the largest five domestic banks in China (ICBC, Agricultural Bank of China, Bank of China, China Construction Bank and Bank of Communications). In the case of inadequate resources of bank loans, if the financing scale is between RMB 10 million and 200 million, Trust is a very good choice; when the financing scale is more than RMB 200 million with mature commercial properties, it achieved the requirement for REITS, go listed, as well as to attract domestic and foreign private fund lease. For real estate projects with good location, even in the early development without maturity, Private Fund's interest also can be attracted. Moreover the method of assuring corporate bonds for listing companies at home and abroad, due to complicated procedures, policy constraints, long time to raise funds and other reasons, are not appropriate for developers'short financing. Generally speaking, real estate companies should not limit to only one financing method, it should select multi- financing methods according to companies'size and projects'types for financial needs. Based on the analysis and comparison of various financing methods, the author believed that the portfolio of "Trust bank +loans +REITs" is the mainstream of future Chinese real estate market.3,Aim to problem of fewer real estate financing methods in China, several suggestions was brought forward from the view of government & capital markets, financial institutions and real estate companies:1)At the government's level, the government should establish criteria and standards for real estate listing; establish and improve second board, three boards and property rights trading markets, supply platform for different sizes and types'companies to get listed; For large real estate companies, encourage them to reverse merge into the market to further enhance the value of bad shell companies; for the bond market, the government should vigorously develop the debt market, gradually open up the approval system. China's trust law does not allow more than 200 trust certificate for one project, the author suggested to abolish this restrictions for better circulation of listing real estate trust, and also strengthening disclosure requirements for trust products, establish real estate investment trust laws, other related laws and regulations as soon as possible, encourage the private and foreign capitals reasonably flow in real estate industries and other high profit margin industries with attractive tax policies. The government should guide and standardize the relevant agencies and nurtured a number of professionals to meet its requirements.2)In the capital market & financial institutions'level, professional skills should be fully bring into play, innovative ideal should be attempted to solve the problem of real estate financing. Financial institutions should expanded financing methods through asset securitization, real estate trusts and other innovative ways; help real estate companies to solve the long-term funding bottlenecks; in the design of products and real estate financing at the same time help standardize the operation of enterprises and prevent risks, and the interests of investors. 3)From companies'level, it should use multi- financing methods as more as possible to reduce the risk of a single financing mode. According to companies'own real estate development, companies should establish a long-term goal of financing strategies; actively trying to expand their financing ways to avoid the risk of singular financing method. Companies also should standardize their operations, improve efficiency in the use of funds and improve their business performance through generous return to repay or attract investors as soon as possible, therefore promoted a healthy development of real estate financing market.The innovation parts in this article are:1,Although this is a mundane real estate finance topics, through the author's knowledge of Chong Qing's real estate market, various financing methods for suitable projects and companies were approved by practical examples. The ideal situation for real estate financing is to get high credit limits from the largest five domestic banks in China (ICBC, Agricultural Bank of China, Bank of China, China Construction Bank and Bank of Communications). When the scale of financing is moderate, trust is a good choice. For those good developed financing methods in overseas, such as REITs, because our country is still lack of corresponding conditions, those methods were failed to effectively carry out. In general, companies should not be limited to only one financing method, they should select suitable multi-financing methods according to their size and project types for its own financial needs.2,The author collected a lot of information on the real estate market in Chong Qing, and through conversations with some managers of real estate projects and companies, and then understands the current financing difficulties. The actual real estate financing situation in Chong Qing is as follows: more than 60% were bank loans, pre-selling of properties also contribute another large part, oversea funds only contribute less than 5%, self-financing ratio is around 20%, so from here the capital market risk is still quite high. By talking with several accountants in some small and moderate companies, I deeply understand the importance of private capital to these SMEs, but at the same time, private capital market is lack of corresponding supervisions, this is the reason for the chaos of this market. China should strengthen the management of funds to these people, not only to give the private sector a corresponding investment channels but also need related laws to regulate.3,From the view of one point to the vice of whole, and through the analysis of the real estate financing methods in Chong Qing, the author brought forward corresponding suggestions and policies aiming to China's singularity real estate financing problem and the financial risk is too high, hope those will have some help for the entire real estate market. |
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