On Financing Channels And Risks Of Real Estate

The development of the real estate industry has been concerned by all sectors of society,On the one hand,it drives the development of the surrounding industries and plays an important role in the growth of the national economy.On the other hand,the real estate industry is related to the people's livelihood.The stable development of the real estate industry plays an important role in social stability and the improvement of people's living standards.Because the real estate industry has its own particularity,the real estate industry needs a large amount of financing,has a long financing period,and a large financing risk.In addition,at present,China's real estate industry has many problems in financing.Since 2016,the macroeconomic downturn and the national macro policy have tightened,the financing problem of the real estate industry has become more prominent: most of the real estate companies have a single financing channel,relying too much on the bank credit system,and have poor anti-risk ability.There are no clear plans and arrangements for funds,resulting in waste of funds and inefficient use of funds.At the same time,most real estate companies do not pay attention to the control of financing risks.In this context,this paper focuses on the improvement of financing model of real estate enterprises and the control of financing risks.Firstly,this paper sorts out the theory of financing classics,the related theories of risk control and risk warning,and lays a theoretical foundation for the follow-up research.Secondly,starting from the financing characteristics and current situation of the real estate industry,this paper analyzes the optional financing channels and corresponding financing risks of the real estate industry at this stage.In addition,through the “case-in-case” approach,the “Poly Nanjing Central Park” project was selected.Through the analysis of the project financing plan,the financing channels of Poly Real Estate and its measures in risk control were visually displayed.This paper tries to summarize the suggestions which have guiding effect on the improvement of real estate financing mode and financing risk control.Finally,based on the research conclusions,this paper puts forward several suggestions from the perspective of policy and enterprise.The purpose is to help Chinese housing enterprises improve financing mode and reduce financing risks so that China's real estate industry can develop sustainably,stably and healthily.Through the above research on the financing channels and risks of real estate enterprises,This paper summarizes the means to enrich existing financing channels and measures to control financing risks.When constructing a diversified financing model,first of all,real estate enterprises should reduce the proportion of bank credit,develop alternative financing channels,and reduce corporate financing costs.Secondly,real estate enterprises should adapt to changes in national policies and actively try innovative financing methods.Finally,real estate enterprises can choose to cooperate with large financial institutions to achieve “integration of industry and finance” and promote the development of corporate financing.In terms of financing risks control,real estate companies can do the following: First,improve the internal financing process of the enterprise,strengthen the internal emphasis and the control on financing risks.Second,in the whole process of project development,the financing risks should be dynamically controlled,and the project fund plan should be arranged reasonably.Third,establish an enterprise risk early warning mechanism to respond and control financing risks timely.