Research On Real Estate Financing Problem In China

The report of 18th National Congress point out that China remains in an important period of strategic opportunities for its development, a period in which much can be achieved. We need to have a correct understanding of the changing nature and conditions of this period, seize all opportunities to attain the goal of completing the building of a moderately prosperous society in all respects by 2020.It's not hard to say that new housing needs and improving demand will continue to increase. It's an important period for the development of real estate enterprises in China before 2020.Under this circumstance, real estate enterprises should take advantage of policy to adjust and upgrade, to expand the financing channels and develop a diversified financing model.This paper introduces the trade-off theory, agency theory, pecking order theory and control theory. The paper introduces the main means of financing, such as equity financing, bank loans, bond financing the paper introduced the main means of financing in real estate enterprises in China. After analyzing the situation, main problems existing in China real estate industry's financing is obtained. Such as: single channel of financing, excessive reliance on bank credit, capital structure is not reasonable and so on. Then the paper analyzed the benchmarking enterprise- W Company as an example and put forward some proposals.In conclusion, real estate enterprises should strengthen their own management capacity and increase profitability and reputation. Strengthen the research on business environment, focus on the macro-control policies and ever-changing market environment. By choosing suitable financing mode and building a diversified financing model, real estate enterprises could seize the development opportunities.Develop real estate investment trusts. China's real estate finance market system should be improved by strengthening the legal and institutional building. Guide the orderly development of the real estate finance market and financial innovation.