Real Estate Financing Market And Its Operation

This thesis researches on the market system of real estate financing channels classified by their respective operative characteristics, including the four markets of the real estate credits, real estate securities, real estate trust (fund) and real estate insurance, which are also concrete forms of transformation from savings to investment in the course of real estate financing.Real estate credits, including those granted to the real estate developers and circulators as well as those to the individuals, are currently the chief business of real estate finance in China. This thesis, while mainly coping with the issue of individual housing consumption credit, analyses its theory foundation and function, basic characteristics and essential elements. On the basis of the present condition of individual housing loans of China, it sets forth suggestions concerning strategy choosing.It argues that China should begin with primary securitization of direct financing of real estate at first. Regarding to the securitization of mortgages on the creditor's rights, though it is the very aim of the real estate mortgage market and securitization development in China, having been restricted by unsuitable factors under the general background of transition economy, it is now still not the priority or sally port of China's real estate securitization, except for some pilot projects.Real estate trusts are the earliest and typical forms of real estate finance, and real estate investment trusts (REITs) (fund) are widespread in Western countries' real estate trust industry. In the future when the individuals in China have ability and access to real estate investment, trusts will surely become a key component of the financial trust industry. But the current development of real estate trust in China still depends on the progress of the trust industry as a whole.Real estate insurance plays an important role in the real estate market system. Meanwhile insurance fund investing in real estate also serves as an important channel of the real estate financing. China should establish the insurance mode with the specialized insurance institutions as its kernel and the guarantee mode with policy housing banks as its operator on the discrimination between housing insurance and guarantee. Moreover, insurance enterprises should be permitted to participate in the real estate realm, making them important financing sources of the real estate investment.