China's Real Estate Financing Problem

The industry of real estate is one of the supporting industries ofour country, and its healthy development plays an important role to thedevelopment of our national economy. It is an important aspect of promotingits healthy development to solve its financing problem effectively. As thestatistics show, about 70% project fund of real estate enterprises of ourcountry comes from the bank loan directly or indirectly, and the amountof real estate fund accounts for 7.8% of the sum of commercial bank's loan.But in the more developed countries, the main fund of real estateenterprises do not come from bank loan and stock market, but from directfund such as bonds, real estate trusts, and industry fund of real estate.The shortcoming of real estate enterprises in our country is that theydepend excessively on commercial bank loan. Developing multichannel offinancing can provide reliant recycling fund and motivate real estatespecialized operation and collocating resources reasonably. It will bebeneficial to form real estate capital market, enrich investmentinstruments, and lessen commercial banks 'risk. Based on the status quo of real estate financing in our county, thethesis firstly analyzed the reason and influence of the single way offinancing and gave some advice to develop multichannel financing. Then,except for bank loan, real estate trusts, industry fund of real estate andmortgage-backed securitization were reviewed. Finally applied alternativeways of real estate financing ways and operating steps and some policysuggestion are given in the end of this thesis.