A Study On Real Estate Financing Of Susong County

Real estate industry, the pillar industry of China’s national economy, is closely related to people’s lives. Taking Susong County of Anhui province as the research object. This paper lucubrates financing situations of its real estate industry. At the end of 2014, China’s urbanization rate reached 54.77% which means that our urbanization development has entered a crucial stage. In newly increased cities and urban population, the development of small and medium sized towns account for a major proportion. Under the country’s forceful macro-control policy, real estate market of Susong County-----a typical small and medium sized town faces unprecedented opportunities and challenges. Faced with the new economic situation, this paper discusses problems in real estate financing of Susong County and proposes countermeasures in the purpose of realizing good guiding function for its healthy development. And also this paper is aimed to provide decision-making reference for local government and enterprises as well as contributes to both industrial optimization and upgrading of Susong County and coordinated development of regional economies.Due to the rapid development of real estate industry, its market needs plenty capital sources. At present, real estate enterprises in Susong County mainly finance through banks to solve the financial problem. But simply relying on banks is far away from satisfying capital needs of real estate enterprises. Optimizing the mode of financing is around the corner.With reference to related domestic and overseas theory research results, this paper researches enterprises and market of real estate industry in Susong County and comes to the following conclusion:In the current financing state of real estate industry in Susong County, financing amount and upside potential are great while growing rate is low and seems to lack of driving force. By comparing and analyzing present financing situation and utilizing abundant statistical data, the paper makes empirical analysis with reference top ractical problems of the local real estate enterprises and finds out several problems in real estate industry of Susong County. For example, single financing source, irrational capital structure, relatively low capital flow efficiency, small-sized real estate enterprises, financing difficulty, incomplete financial system, lacking of market depth and so on. The paper deeply analyzes causes of these problems. In the end of the paper, by analyzing local situations with research methods such as document analysis, field investigation, comparative analysis and quantitative and qualitative method, countermeasures and advices on real estate financing of Susong County are promoted, including three aspects i.e. enterprises, financial institutions and government. As for enterprises, they should improve its credit rating and management capacity, strengthen the internal institutional reform, improve the utilization of funds, and build diversified financing channels. As for social institutions, we should support the development of micro-financial institutions, establish scientific credit-rating system, explore effective ways of private financing, promote the development of civil security agencies and establish developing funds for real estate enterprises. As for the government, it should establish reasonable and orderly financial systems, strengthen enterprises’ credit construction, complete housing accumulation fund system, and establish and perfect laws and regulations of the real estate market.