Macro-control Study With The Real Estate Company's Financing Strategy

Since 1990s the Chinese real estate market has been in a period of upright development, which may fluctuate for a while but steadily accelerate its speed. Considering for the stabilization and healthy development of the market, the government has promulgated related policies since the second half year of 2003. But last year the government issued some notes continually to contain the high speed uprising for the policies mentioned hereinbefore resulted little. Some auctions of land of the main cities are aborted this year. Some real estate companies even pay 70,000,000 yuan of penalty to transfer the "King Land" acquired last year to others or the state. The market is now a Bear Market and the rumor about the market turning point appears in the folks during this spring festival. The concrete signs are tight finance of the companies, reorder of the industry and even the "new policy" by local government to promote the buying power. The in-season financing and the amount of financing impact the further development or the survival of the company.The real estate industry is the pillar industry of national economy and meaningful for both the micro-life of ordinary people and the macro economy of the state. On the basis of modern finance theory analyzing and recent macro-control policies of the state, this paper gives examples and analysis of the financing phenomenon of Chinese real estate companies, including the loan, share, debt etc, and analyzing the different financing strategies of different companies. For example, this paper advises how to choose the suitable financing ways and perfect their financing channels for the small scale domestic companies. It offers the reference opinions for the financing of real estate companies and also the policy-making of the finance administration departments.