Research On The Financing Models Of Chinese Real Estate Companies

The real estate industry in our country is facing the big challenge in 2014. With the change of the relationship between supply and demand, the regulation of the national policy, the real estate market has fallen from an explosive situation over the past two decades into a rational and insipid way. However, due to a less available land area in the first and second-tier cities, the cost of lands remains high. For one thing, many real estate companies are still far from a smooth process in sales return aspect. For another, instead of dropping a little prize, the huge spending climbs to a higher level. The sustained high debt-to-assets ratio make this industry a risk gathering place. At present, how to break the single way of bank credit and how to develop diversified financing vehicles is a burning issue before each real estate company.In this paper, the author is about to analyze the financing states of real estate companies. And try to find out the latest changes and policies, the unfavorable factors as well as the crux of the problems. Besides, this paper chooses five financing patterns from the abroad mature patterns which conforms most to China’s national conditions to make detailed statement. At the same time, given the recent internet financial has made huge impact to the traditional financial industry in China, the new financing way not only adapt to the needs of real estate enterprise, but also creates new business opportunities which surpasses the debit and credit way for its old cooperation partner - the bank. Afterwards, the author tells readers how to make judgment on corporate’s capital structure and financial leverage through analyzing the business background, financial situation and financing method of China Merchants Property. Then, the article illustrates various means to combine different financial tools flexibly to achieve successful and diversified financing. The article put forward the relevant optimized advice on policy, law, credit construction, internal control, cross-industry innovation in the last chapter.