Shortage Of Funds For Real Estate Companies In The Context Of National Macro-control

Real estate is one of the indispensable industries in modern economic society, which is necessary for the development and production of human society. Real estate pushes the development of national economy that could not be replaced. From the time of reforming, real estate industry has grown quickly with strong support from government that ensures the demand of housing and commercial usage. The contribution of real estate connects with national and domestic support. Besides those achievements, some problems in the development of real estate should be paid attention: the long term high financing cost and the single way of financing which is from bank loan even from the very of beginning of the industry till now. Real estate’s over depending on bank has attracted all scientist to question the reasonability of financing and real estate price rising.Real estate companies will be greatly impacted by nationalmicroeconomic supervision and control. The microeconomic condition and financial problems push companies to find new financing method except traditional ways like bank loan and public offering to solve current lack of funds. This paper explains the problem of single financing method in China by analyzing the issue of lacking funds in real estate industry. With the help of foreign advanced experience in this area, connecting our nation’s actual situation and analyzing relative data to find the fundamental reason of lacking funds in current real estate industry. Effective data could be provided for regulatory institutions in real estate industry, advices could be provided on how to limit the behaviors of real estate industry and services could be provided on enrich financing methods.Standard research method is mainly used in this paper, together with some inductive analysis and comparative analysis. This paper will start from the general description of basic real estate theories and then analyze the financial lacking problems and discuss correspondent reasons. Finally, advice will be given on how to solve financial problem upon learning from foreign experiences on this issue.Except Introduction part, this paper will explain the financial cost problems of electronic companies from four chapters. First, Introduction part includes research aim and purpose, research method, literature review, and research aim, research content, basic construction, main problems to be solved and innovations of this paper. Second, chapter1is the general discussion of financial problems in China which includes the theories, industrialproperties, the division of internal factors impacting company financing, review of national microeconomic supervision and control policy and the meaning of solving financial lacking problems. Third, chapter2is the analysis of current real estate industrial condition in China including summarizing current problems from financing conditions and existing problems of companies and reasoning analysis for funds lacking problems. We found that the shortage of funds is due to monetary tightening, local governments boost land prices and the way of estate financing is few,. on the other hand,is due to inner reasons, such as funds shortage, the ratio of Asset-liability is too high, lack the financial planning and so on. Forth, chapter3is the foreign experiences on solving funds lacking problem including real estate investment trust funds, securitization, currency forward contract and Syndicated financing. Fifth, chapter4gives advice on how to solve funds lacking problems whose methods including enriching the divisibility of financing methods, building fundamental housing facility together with government, transforming some development mode and center, decreasing companies’capital balancing rate and improving relative regulations and improving financial markets in China. Sixth, conclusion part is the summary of this paper and correspondent drawbacks and expectation.