Research Of China’s Real Estate Private Equity Fund

The real estate industry is a capital-intensive industry. Capital is the blood which can ensure the operation of the real estate development project. However, the simple financing channel and over-reliance on bank loans will not be conducive to the development of the entire real estate industry. In recent years, the state issued all kinds of financial policy to tighten bank credit to the real estate enterprises, and strictly limited financing channels, making it more difficult to acquire financing. Real estate private equity funds has appeared and become a trend of China’s capital market because of its characteristics.China’s real estate private equity fund has just started. Although the development is repid, the current domestic laws and regulations related to it is far from perfect. Due to lack of supervision, the problems of this new way of investment are gradually exposed. The owner of Haicang Capital escaped this year casted a shadow on the development of real estate private equity funds.This paper analyzed the business model of the pool of money run by Shanghai W Equity Investment Fund Management Co., Ltd., and the problems existed in the process of project investment in real estate private equity fund with financial models as well, affecting the entire corporate capital pool business model. According to the problems raised, the thesis proposed viable feasible solutions. This case shows that the establishment of a healthy development of the real estate private equity fund depends on standardized market and efficient supervision system.