Research Trust And The Problem Of Financing Of Real Estate Enterprises

As an industry of high intensive funds, the real estate industry can'tdevelop without the powerful finance support. However, the developmentof the domestic real estate industry inflates quickly under the state-ownedbank support, the most financing of the domestic real estate enterprisesdepend on the only channel of the bank. Since 2002, the national realestate investment has increased above 30%, while the commercial bankreal estate investment has increased above 25%.To the end of Apr. 2003,the real estate loan amounts to 1.836 trillion, which takes 17.6% of totalloans. And among them, the proportion of personal housing loan is8.9%.In the selective check of central bank to real estate loan, near 25%loan is found to violate the credit rules. The risky problem exposed isvery serious. Proceed from the consideration of the risky control, thecentral bank promulgated a law named NO.121 file on June 13th, 2003.NO.121 file limits and normalizes the development loan of the real estateenterprises, fluxion funds loan of the building business enterprises andthe consumers' loan on schedule. It causes the real estate businessenterprise' funds source be restricted directly, and on the other hand itcauses the returning speed of the real estate business enterprise fundsbecome slower. So the small real estate business enterprise may face therisk of the funds chain splitting. And in the incomplete stock market, thewishes of financing from the stock market are unrealized in short time. Solooking for the vast investment source becomes the urgent affairs. As oneof the four financial major of pillars, Real Estate Investment Trust (REIT)became a new financing channel of the real estate business enterprises. At the same time, the bank's deflation policy gives REIT a newchance and the market space. Our trust industry has restructured for 5times, and the trust cooperation are being placed on the start stage after agreat adjustment, it urgently needs the successful business and productsto re- set up the good prestige and acquires the profits, in order to exaltcompetition. In the period of time from trust reopening the business in2002 to NO.121 file being published in 2003, All REITs release trust 19trades, but in fourth quarter of 2003 the figure is 38, collecting the fundsof RMB 38.3 hundred million, comparing the amount of the third quarter,it increased on time, and RMB 38.3 hundred million, the proportionweight that shared all quantities and amount of moneys of trust tradesalso rose about 100% . REIT is the mixture of financing trust industry and the real estateindustries. It not only provides the ideal channel for the small investors toinvest in the real estate, but also strengthens the competition of TrustInvestment companies, promoting the fast and healthy development of theChinese real estate industry. Therefore, it is important to research thepresent condition ,the development obstacle and counterplan of REITs,which is significant for solving the current choke point and furtherdevelopment of the real estate and trust industry. This text commences from the traditional financing channels of thereal estate business enterprises, analyze many problems among them, anddiscuss the influence of constant changing financial policy on the realestate business enterprises, explain the real estate business enterpriseswhich adopt trust will have strong financial advantage. Then, it explainsthe general theory that the real estate trusts the financing and thepossibility of unfolding real estate trusts the financing in the our country.Immediately after the point introduces the typical model of trust financingin our country and the creative direction of futures of the financing. In theend, on the foundation of the above treatise, it puts forward thesuggestion to aim at the current obstacle of implementing real estatetrusts financing in our country. Chapter 1 probes into the necessity of researching the financingproblem in the real estate business enterprise, mainly elaborate theblemish of the financial policy, the influence of changing financial...