Research On Real Estate Trust In Financing By Real Estate Development Enterprises

Real estate exploitation, a process closely correlated with capital financing and operation, has massive capital demand in practice. Whether the enterprise has financed successfully has a great bearing on real estate project, even on the development of the industry. The bank credit plays a leading role in financing structure of real estate enterprises in China. The central bank promulgates "The Notice about Further Strengthening the Management of Real Estate Credit Operation" namely 121 article in June, 2003. It carries on the macroeconomic control to the real estate market, enhances the threshold of direct financing, and cause capital tensions in domestic real estate enterprises universally.Realty industry investment trust, in this background, gains rapid development as one of effective financing channels。It can provide the massive funds for the real estate industry, and solve the issue of capital resources which are faced by most domestic enterprise in industry. The development real estate trust financing service may change the present dependence of the pattern merely on bank loan financing, and may help to reduce the financial risks.This paper focuses on real estate financing on the real estate development enterprise perspective. We first analyze the actuality in financing of the domestic real estate enterprises. Then we introduce the basic theory of real estate trust and discuss development and operation mechanisms of real estate trust in our country. Furthermore we point out the obstacles on the development in real estate trust. At last some proposals are presented.