A Research On The Financing Mode And Structure Of Real Estate Company In China

In the past few years,the real estate industry is the main industry of China's economic growth.The rapid development of the real estate industry has also led to the development of other industries.The role of the real estate industry in China's economic development is very prominent.Real estate industry in the project cycle is generally two to three years,companies rely on short-term funds within a year need to repay the industry as a whole is facing the pressure of poor financial operation.In addition,the real estate industry known as "land is king," said that many real estate companies in order to maintain their own competitiveness,at high prices for land reserve,thereby increasing the financing risk and financial pressure.In the project development process,the real estate industry failed to maintain the healthy operation of the capital chain.Over the past decade,many real estate enterprises have been expanding their investment scale and blindly expanding their economic boom.The return of these investments is often far from the expected cash flow,that is,the growth rate of cash flow can not keep up with the growth rate of investment.Quantity and capital requirements do not match,the real estate business into a tight chain of capital situation.In addition,the real estate enterprises blindly pursue the "diversification"development,blind expansion,at the bank to borrow a lot to meet the investment needs,high debt financing approach led to its high financing risk,debt pressure,is not conducive to the real estate business capital chain Operation and development.The real estate industry has high investment,high risk,long construction period characteristics,leading to the real estate business capital return slow.The slow return of corporate funds will aff-ect the normal operation of the enterprise capital chain.The shortage offunds and the problem of capital circulation have become the bottleneck of the development of real estate enterprises.If the real estate business financing results are not reasonable in the external macroeconomic policy under the influence of easily lead to real estate funds tight,difficult to maintain the daily operation of the situation.Over the past decade,the rapid growth of the national economy has led to rising prices,inflation,the central government has also tightened the bank's capital reserves,monetary tightening led to an increase in loan interest rates,loan interest rates increased and caused the number of consumer loans cut back.The number of consumer loans decreased,the number of buyers decreased,leading to real estate business funds difficult to recover.Therefore,it is of great significance to optimize the financing structure of real estate enterprises.This article is in this context,the real estate industry in China's financing and structure of the study.This paper first analyzes the current situation and problems of the financing of real estate enterprises in China.Then,based on the analysis of the status quo of BL real estate financing,this paper discusses the problems existing in the structure of BL real estate with the theory of capital structure.Finally,according to the analysis of the previous situation,the paper puts forward the policy suggestions to improve the structure of BL real estate financing.Hoping to provide some reference for the optimization of financing structure of other real estate enterprises in China.