A Research About The Diversification Of Financing Channels Of Chinese Real Estate Enterprises

Real Estate, as the pillar industry in national economy, makes great contribution to the development of national economy. Real Estate is a typical capital-intensive industry, an ample and stable financial support is vital to its development. With the adjustment of Chinese investment and financing systems and the change of state macro control, finance chains of real estate enterprises are facing critical challenge. How to solve the bottle-neck of fund is becoming to the chief question to Real Estate industry. Recently, some large enterprise began to raise funds from international finance market or by other ways, such as trust and corporate bond. However, the main source of funds is still the bank credit. This thesis is mainly on the status quo of Chinese Real Estate financial issues. Firstly I analyzed the development situation of macroeconomics and real estate industry, present financing channels of real estate, and Chinese regulations and polices for financing. Under this environment, whether Chinese real estate enterprises can break the barrier of financing and healthily develop, all of this mainly depends on innovation of financial tools and smooth financing channels. Herein, I introduced some financing channels which were successfully being used in developed countries. The possibility of applying these financing channels on the development of Chinese real estate was also been discussed with the consideration of status quo. In the last part of this thesis, I provided two suggestions to solve the financing problems in both macro and micro aspects. 1. Macro aspect: solving the problem from the angle of government and market. (a) Establishing and improving the framework of laws and rules on real estate. (b) Increase policy to support real estate. (c) Perfecting mechanism and function of real estate financial system. (d) Solving the problems on credit and rating. 2. Micro aspect: The enterprises should absorb funds by multiple ways. The selection of financing depends on consideration of legality on financing channels, purpose and cost of financing, the ability of the company itself and structure adjustment and organization form of the company. With the consideration of all the factors mentioned above, a real estate enterprise can make wise decisions.