Study Of Financing Channels For Real Estate Enterprises In China

In recent years, with the rapid growth of the economy in China, the real estate industry is developing quickly; It has become a Pillar Industry of the national economy. The real estate industry has the Characteristic of capital denseness and requires considerable investment. So the finance industry acts an important role to the real estate industry in China. Compared to the situation of foreign full-grown real estate industry, Chinese real estate financing system has lots of shortcomings.The purpose of this paper is to optimize the financing channels of China's real estate enterprises. Based on the study of the real estate finance theory, firstly the author analyzed the relation between the real estate industry and real estate financial industry, and the importantance of real estate financial industry for real estate industry. Also the author analyzed In-depth the factors affecting enterprises' choosing for real estate financing channels: 1.financing costs 2.the operating condition of the enterprise; 3 .the securities market conditions; 4.the overall economic environment. The principle of real estate enterprises choosing the real estate financing channels could be described as: the principle of efficiency, the principle of proportionality principle, and the principle of credibility.On the financing theory for real estate enterprises, the paper discussed the concept of real estate financing, including the theoretical connotation, the relation between real estate and finance, and the action of finance in real estate. The paper considers that the factors that affect financing channels choices of the real estate enterprises are financing cost, operating conditions and general economic environment. The principles of the real estate financing include efficiency principles, the principle of proportionality, and the principle of credibility. At the same time, the paper also reviewed the domestic and foreign research results.In analyzing foreign real estate financing and financing channels choices in advanced coumtries, the paper analyzed operation method of enterprises in the U.S and Singapore. By the analysis of real estate financing channels in advanced foreign countries, the author draw his own conclusion on which covers four important items: 1.a sound real estate finance market .2.to diversify financing channels;3.to improve the system of loan guarantees;4.to enrich the financial tools.In analyzing China's real estate financing and the financing channels, the paper analyzed the bank loans, bond, Stock, FDI and others financing channles.Then,the author pointed out the main problems in the real estate financing in china: 1. the single financing channel, heavily dependence on bank loans 2. serious shortage of self-owned funds.3. Imperfect system. These problems strictly constrain the financing of the real estate corporations, and bring enterprises, banks, even the national economy a lot of risks: one of the risks is the liquidity risk, the second one is the debt risk; the third one is the risk of a market bubble.Then the paper brought forward countermeasures aiming to Optimize financing channels for real estate enterprises in China. The measures mainly covers three areas: 1. Construction of a wide range of financing mode; 2. the construction of financing channels combination in diferent development stages .3. the optimization of China's supporting system of real estate financing channels.Finally, the paper summarized the main wiewpoints and gived out the existence of deficiencies.