The Research On Overseas Financing Methods Of Chinese Real Estate Companies

The real estate industry has been one of the core industries backingthe growth of China’s economy since the1990s. As it is a capitalintensive industry, financing plays a key role in the business operationprocess. Some of the real estate companies have put more effort onoverseas financing on account of recent macro-control policies releasedby the Chinese government. Major overseas financing methods include:overseas IPO (or backdoor listing), issuance of corporate debts, allotmentof share, etc. Questions have aroused wide interest in the industry onwhether to go to foreign capital market, which is most ideal destination,and how to select the most optimal methods of financing.Firstly, the thesis will start from the current status of the industry inChina by focusing on the necessity of overseas financing and review theresearch achievements. Secondly, the paper will introduce the motivationbehind financing and the structure of the paper. Thirdly, the payer willgive brief analysis on major domestic financing approaches for Chinesereal estate companies. Fourthly, the paper will compare the various waysof overseas financing between themselves and with domestic financingapproaches in theoretical ways and through quantitative financial index. Finally, the paper will try setting up a guideline of financing for Chineseproperty companies and give suggestions on the possible futuredevelopment of overseas financing.