Real Estate Market Financial Risk

The real estate industry is very unique industry in the China's current economic development. The real estate industry is developing rapiddly, and financial risks is increasingly prominent, the financial risks of the real estate not only affect the stable development of related industries, but also is crucial for the stability and development of the entire financial industry and national economic. As the real estate industry is capital-intensive particular industry, closely linked with the financial sector, at the background of national macro-control and financial turmoil, real estate, financial risks can not be underestimated.As the birthplace of the private economy, Wenzhou benefited from the rapid development of the national real estate, real estate market in Wenzhou is rapiddly expanding, and real estate prices is long-run high, making the scale of the real estate credit expand, higher mortgage industry concentration makes potential systemic risks in the banking sector expand. The author believes, the real estate market trend in Wenzhou is overall better health, but currenttly the real estate market is still in the critical period of control transition, there are a lot of external uncertain factors affecting the real estate market development, market risks in the short term is continuous expanding, it is necessary to pay attention to the research on regional real estate financial risk, establish real estate financial risk evaluation index system, analyze the various factors affecting the financial risk, and propose appropriate measures, which has some theoretical and practical significance for guarding against financial risks of real estate.This article is based on reality of financial risk management of real estate in Wenzhou City, relies on related theory of real estate finance, uses qualitative and quantitative analysis, theoretical analysis and empirical analysis and other methods, from the present situation of financial risks of real estate development in Wenzhou City, highlights that a strong private capital in the local real estate market speculation is the underlying cause of long-term high price, which is different from the other real estate markets. This article builds a financial risk assessment system of real estate, and analyzes the causes of Wenzhou financial risks of real estate, based on the empirical analysis, this article proposes that it needs to innovate real estate financial products, to broaden the financing channels, to promote the formation of a wide range of risk diversification, risk-sharing mechanism; continue to strengthen financial supervision, to build real estate finance prevention system; strengthen commercial banks' internal risk management and self-development, to continuously improve the ability of prevention and control of risk; to improve the financial legal system, strengthening its support of policies and the legal system, and further create development environment for real estate finance.