Research Leading Real Estate Companies Real Estate Investment Fund

With the rapid growth of Chinese economy since the reform and opening up, thereal estate industry gained fast development opportunities for about20years.As the pillar industry, it has a very important position in Chinese economicsystem. The real estate industry is a capital-intensive industry. Longconstruction and operation time, heavy capital investment and long turnoverperiod are its industry characteristics. Capital is crucial to real estateindustry.Sufficient funds are needed to be the support and power for real estateindustry. But at present funds are mainly depended on banks or shadow banking,narrow financing channels result to weak ability to prevent capital risk.Importing relatively mature foreign real estate finance development model andvigorous development of real estate investment fund are the objectiverequirements for Chinese real estate development. Considering Chinese realestate’s present situation and domestic economic environment, real estateinvestment fund led by real estate enterprises will provide better marketprospect and development opportunities.Chinese real estate industry and financial industry are rapidly growing withimperfect industry structure and many issues. They need a process ofcontinuous improving while discovering problems.Based on the real condition in China, this paper elaborates the concept, typeand operation mode of real estate industry and private equity funds. Learningfrom the experience of foreign successful mature market and lessons fromdomestic actual cases, this paper also analyzes how China can develop realestate finance led by real estate enterprises. It also offers recommendationson the development of real estate finance in different profit models fordifferent real estate markets.