The Research On Financing Of Intermediate Real Estate Enterprises In Beijing

Financings hold the balance on Real Estate businesses, the financing activities among the real estate developments by enterprises have become rather vigorous due to the large development scale of the Beijing estate market. So, the article chooses the intermediate enterprises as objects to study, which are the most representative in the area in real estate investment.By emphasizing the main means and ratios at the present time and compares the advantages and disadvantages in detail, on the base of the capital structure theory—MM theory, together with another theory--financial leverage, the article analyzes the synthetic financing cost and the best capital structure. Besides, the article brings forward the strategy and the principle on how to finance to reach the ultimate goal, which is to make the stockholders earn money to the greatest extent. By comparing real estate businesses and other trades, the article discloses the differences and draws a conclusion that only when the enterprises can forecast the investment's capital cost accurately and can arrange the schedule properly, and only when the two factors above combine as an organic whole, can the enterprises prepare a feasible project on financing.By instructing two examples to expatiate how real estate enterprises in Beijing manage to raise money, the author analyzes and calculates capital cost and capital structure between two enterprises, in the light of the theory above-mentioned. The author also summarizes the characteristics and the ubiquitous problems on raising money by intermediate enterprises in real estate businesses in Beijing by comparing the two examples each other and comparing with enterprises, which come into the market. The means, which lies more on debt financing, will inevitably result in many problems, such as simplex approaches to raise money, exorbitant balance sheet ratios and biggish financial risk.People's Bank of China and the State Department have promulgated a series of documents in the recent past year to strengthen the supervision to real estate enterprises on the business of financing, reducing the financial risk to the lowest extent as possibly. From the point of real estate enterprises, the article discusses how the documents promulgated influence real estate businesses on financing.In the light of analysis result from above, the author puts forward that intermediate enterprises in Beijing should learn advanced experiences from foreign real estate enterprises and brings forward suggestions that how to improve the ability on financing and how to cope with changeable policy. The author points out that enterprises should strengthen internal management to boost up competitiveness. Meantime, the enterprises should exploit more ways to finance and improve the proportion of self-finance to keep risk and return balanceable.