China's Real Estate Development And Corporate Financing

The real estate is a capital concentrated industry. however in recent years, because of the national macro-control policy, and a series of great adjustments to the realty industry which have carried on by the government, the shortage of the fund becomes the foremost enterprises'existing problems. First of all, because of the transition of remising-land way and the national policy of tightening land, the trade price of land rises rapidly and the purchase cost rises continuously. Secondly, since national macro-control policy has carried out in 2005, the developer can't postpone paying a price of land to the government, and also can't be in arrears with either to the builder's fund and worker's salary so the threshold of the bank loan and the trust financing is high, in sddition the developers'danger of the disconnected chain of the fund grows seriously.During the course of adjusting the relivant policies, not only the real estate enterprises working excllently but also the infirm ones need systemicTheories, so that they can understand the main financing modes and financing products roundly. The existing treatises and articles about real estate financing, few of which recommends and analyzes the enterprise's available financing way at each stage according to enterprise life cycle, being short of effective theories to guide finacing dicision and practice of work at each developing stage of real estate enterprises. Therefore,we will foucs on the finacing mode selection and decision about secondary and small real estate enterprises in our main content of this article.This article, lays its foundation on the financing theory --MM theory, which introduces the general theory of modern enterprise financing, and summarizes the financing concept, characteristic, influence factor of real estate development enterprises, then to proceeds with financing current situation of the domestic realty industry, analyzing the question that financing way of real estate development enterprises exists at the present stage in our country, and pointing out the necessity and importance of seeking new financing way of real estate development enterprises in our country. This paper proposes that our country needs to build multi-channel financing mode of realty industry. In the article, the author analyses 7 kinds of financing ways, including listing financing, real estate trust, real estate fund, bond financing, project financing and lease financing, and sorts out the 7 kinds of financing ways above-mentioned according to enterprise life cycle, and at last presents the financing way that sub-medium sized real estate development enterprises can adopt now.The goal in the research of this article is to carry on advantages and disadvantages analysis to the 7 kinds of financing ways besides bank loan, according to its characteristics, give the policymakers of enterprises a clear theoretical frame, help the policymakers of sub-medium sized real estate development enterprises to have a try which carries on many kinds of financing way of the goal in such possible cases.