| With China’s monetary policy being tightened continuously, real-estate enterprises face greater difficulty in financing. Such an unfavourable capital environment imposes great stress on capital chain of real estate enterprises, who have high capital demand and long cycle, and their development therefore hit a bottleneck.Common financing methods in domestic real estate market include bank loan, IPO financing home and abroad, bond financing, real estate trust fund and investment fund, private loans, etc. All these methods are influenced by economic, political and market factors more or less, and can’t satisfy real estate enterprises’demand.In such a context, security companies launched their innovative business- margin trading, buy-back on pledged stock, and agreed repurchase securities trading, all which can better satisfy real estate enterprise financing requirement.With an analysis on current real estate market investment and financing situation, as well as on problems occurred, the paper introduces some theory and application of margin trading business and its derivative business, it also presents a case of margin trading practice in BJ real estate development financing business, and then reaches a conclusion.Current financing makes it difficult for real estate market to have a sustainable development.The paper elaborates a brand new feasible real estate financing method to diversify and expand financing channels, to boost security company transformation by offering new business, so as to improve their position in financial market. The method offers lower financing cost to real estate enterprises with convenient financing process, flexible use of capital and efficient lending. The paper illustrates the method with a case study to prove the feasibility. Such a method has a profound impact on diversifying real estate market financing structures. |
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