The Analysis Of Financing Channels About Commercial Real Estate In China

The real estate industry is an important in our national economy, and plays an important role to promote social development. However in recent years, there are lots of factors that worsen the financing environment which is very essential to real estate industry’s development. As a typical capital-intensive industry, real estate has the characters of large capital investment and long payback period, etc. Real estate company’ internal finance is unable to meet the normal financial needs far away, and it needs to get enough money by external financing. Broadening the financing channels is the primary problem for real estate industry if it wants to realize sustainable development. With the constant improvement of the capital market and financial market, more and more financing channels can be chosen. However because the equity, bonds, trusts, funds and other financing channels develop slowly, diversified financing system is still far from being achieved.Based on the analysis of bank loans, public financing, real estate trusts and perpetual bonds, we explore the diversified financing channels of the real estate industry. It’s very effective to avoid real estate funds fracture risk, and solve the financing difficulties of the real estate industry.