Research On The Financing Mode Of BGY Real Estate Company

Chinese real estate industry is the pillar sector which hold vita impact on nationaleconomy. The healthy development of property industry have direct influence onnational economy. However, the difficulty in financing increasingly become thebottlenecks for the healthy progress in real estate industry. Especially, the financingmeans for private real estate enterprise worthy more attention. Based on thisbackground. This paper mainly focus on literature analysis, comparative analysis andlife cycle approach. By studying the overseas-listing company-BGY financing means,this paper aimed to explore the financing choices for Chinese private real estate.The structure of this paper is as following: Section one mainly introduces thebackground and the significance of this paper, also gives an overview of the evolutionof the theory of corporate finance decisions; then, section two outlines the financingways in Chinese real estate enterprise, and make comparison in terms of the appliedcondition and the strengths and weaknesses. The comparison could provide the theoriesfor financing selection; Section three introduces the development history and the currentfinancing model in BGY, and investigates the potential problems, e.g. The financialmeans has not adopted the macroeconomic policy, the financial ways cannotdifferentiate programme development stage; insufficient financing channels, weakenterprise resources integration ability and explore the reasons; Through analyzing thefactors which affect the choice of financing means, section four combined theproblems exist in BGY, proposes the optimization plan for financial selection means:thecompany should adopt select the proper financing way according to the financialenvironment, development stage and programme types. Finally, section five presentssome suggestions for BGY company’s financing form and explains some safeguardsmeasures for the new financing means: diversify financing ways, enhance financial plansystem, improve enterprise resources integration ability, introduce financial professionals, promote the development of the relationship between banks andcompanies.This paper focuses analysis on a typical real estate company-BGY and this is acommon problem which has troubled many private real estate companies. The solutionsand professional knowledge in this paper could provide reference for companies.Further studies are needed to explore more practical financial measurements for privatereal estate companies.