Analysis Of Financing Channels For Real Estate Companies

It's all known that real estate is the one of most profitable industries. However, the other side of this fact is Real Estate Company always meets serious financial problem. In general, all the chiefs of Real Estate Company are striving to get money, financing, financing and financing. The nascent company needs money to drive projects. The developing company needs money to operate projects. The mature company needs refinance the expanding of projects. In a word, finance is the most important thing in real estate industry.However, there are so many obstacles on the way to finance successfully. For instance, bank credit and foreign investment intension make a bottleneck of finance resource. In the meantime, the financing ability of these companies is limited by following factors: the difficulty to be listed company, the immature of trust and fund markets, the inaccessibility of small- scale securitization and etc. Additionally, the academic disagreement made an absence of a systematical theory to instruct those real estate companies.Based on the analysis conclusion of present financing resources, this paper refers to the foreign advanced experiences and suggests an appropriate finance mode to Real Estate Company in China: the first step is to take full advantage of trust in the framework of present MBS system. Secondly, we should take following as complements- corporation convertible bond, foreign investment and insurance fund.