Study On Realty Industry Enterprises Financing In China

Realty industry is a business domain that has great developing potentiality. In China, since the implementation of Reforming and Opening Policy, together with the deepening of economic restructuring, realty industry recovered from the old economic structure, and developed rapidly with the facilitation of the accompanying policy reforms/developments, such as the comprehensive development in urbanization, compensated usage of land, reform of the housing system, capitalization of housing distribution etc.In Notice on promoting sustainable healthy development of Real estate market (The State Council (2003) Document No.18), for the first time, that realty industry was put forward as a one of the domestic pillar industry. This document also outlined the long-term development of realty industry and was considered to be a guideline in this field.Due to the unique features of realty industry, such as large volume investment requirement, slow monetary turnover rate and self-up valuation, etc, financing is extremely important in realty industry. Yet the traditional financing modes are becoming less or even barely capable of meeting the needs of the rapidly developing realty industry. Thus the breakthroughs in financing are more demanded than ever before in realty industry.