Research On Public Financing Model Of Commercial Real Estate

After the abolition of welfare housing in China in 1998,the real estate industry experienced rapid growth for more than a decade.China’s commercial real estate development model follows the “heavy asset” model.In the early days of the development of China’s real estate industry,this model has achieved great success.However,this model has the disadvantages of high investment,high asset-liability ratio and slow capital turnover.After more than ten years of development,commercial real estate has gradually faced problems such as slower profit growth,rising land costs,regulation of the real estate industry by the state,and tightening of bank credit.The drawbacks of the “heavy assets” model are further highlighted.In this context,commercial real estate needs to be innovated,and one of the important aspects is the innovation of financing models.As a new financing model,crowdfunding model provides a new channel for the financing of commercial real estate.This paper starts with the relevant theories of crowdfunding financing,and uses case analysis to study the performance of Wanda commercial real estate crowdfunding.Firstly,it introduces the relevant theories of real estate crowdfunding and the new financing mode of real estate crowdfunding.Then it introduces the financing subject,operation process,model characteristics of Wanda crowdfunding financing mode,and then applies the performance of Wanda commercial real estate.The evaluation included evaluation speed,financing subject freedom,financing cost,solvency,financial risk,financing channel,income structure,and project expansion speed.Through analysis,this paper believes that Wanda commercial real estate has achieved good performance by using crowdfunding financing,but Wanda has some problems in the process of using crowdfunding model.In response to these problems,this paper puts forward relevant suggestions: the state should improve the law;Wanda needs to improve the investor rights protection mechanism,design differentiated rate of return,and improve the liquidity of crowdfunding products.Only by solving the problems of crowdfunding financing can we further improve the performance of crowdfunding financing and let crowdfunding play an active role in the development of commercial real estate in China.