The Research On Real Estate Companies Financing Through Assets Securitization

Real estate industry is very important in national economy. Real estate development is closely correlated with financing and fund operation, and the demand of fund in real estate project development is usually mass. Better financing is the key factor in real estate project developing and real estate business operating.Real estate financing is the guarantee for real estate industry to develop; and it is the main manner to macro control real estate market and consumption. Recently, the capital resources of most real estate developers in China are mainly from bank credit. Their financing structures are comparatively simple and are easily influenced by the macro economic polices and economy environment. In real practice, they had turned to other new financing approaches such as stock market financing, overseas financing, enterprise bond and REITs and so on.The article analyzes the financing problems on the foot of real estate companies and analyzes the characteristics of real estate financing in China today and compares the advantages and disadvantages, cost and risk of financing approaches. On the basis of the analysis with the definition and principal of the assets securitization, the author illustrated the several application forms of the assets securitization in the real estate industry, and the importance meanings of applying securitization in Chinese real estate industry. Based on the analysis conclusion of present financing resources, the article refers to the foreign advanced experiences and suggests an appropriate finance mode to Real Estate Company in China: REITs and converse the future income of immovable real property such as land reserve and vacant house to present cash flow, solve the financing problem of real estate companies.