Control Of Financial Risks A Real Estate Trust Projects

Since2010, real estate trusts has well developed and gradually become strongcomplement of bank loans which benefits real estate industry a lot. The trend of rapidgrowth prompts trust companies to pay attention to the risk of trust projects and enhancetheir capability of risk control. When operating the real estate project, trust companyneeds to analyze the risk of this project with global horizon. Financial risk is the mostcomprehensive and intuitive one among the risks that the real estate trust faced with.And quality of a unique project depends on the level of financial risk. So the trustcompanies also focus on financial risk. This essay is started with financial risk, and thenrisk performance is summarized and factors that have influence on financial risk areanalyzed. In the end of this essay, I have offered some suggestions of risk control on thebase of standards and laws issued by government.In this paper, case analysis is mainly used to analyze financial risk of real estatetrust. Transaction structure, cash flow and share repurchasing will be demonstrated andthe risk this real estate trust project faced with will be spread. Deduction is used inproviding measures of risk control after analyzing this real estate trust.Real estate trust has played positive role in development of real estate industry. Butthe rapid pace of development also makes real estate trust is facing challenges frommarket and regulatory authorities. The article has proposed some advice for somecommon problems faced by the real estate trust projects.So trust companies shouldchange their business ideas, exert advantage of asset management and enhance thecapability of risk control to adapt to new trends in capital market and get healthyimprovement finally.