The Application Of Mezzanine Financing In China's Real Estate Financing

Real estate is a promising industry. In China the development of real estate cannot only boost the development of national economy, but also accelerate theinvestment and consumption demands. Improving the real estate industry in ourcountry is one of the strategies that holding the continually development of ournational economy.Real estate is typical capital-intensive and the financing environment is veryimportant for its development. Now, the financing structures of most real estateenterprises are own capital plus bank loans plus prepaid of building enterprises plusprepaid of the customers. The real estate enterprises badly depend on the bank loans.But recent a series of policies that restrict the loans from bank and trust companymake the real estate enterprises harder if they want to get the capital. In suchenvironment the real estate enterprises need more new financing methods in order tosolve the financing difficulty that they are facing now.This paper introduced and analyzed the history and the scale of mezzaninefinancing, summarized the characteristics and operation pattern of mezzaninefinancing, considered the development actuality and financing structure of our realestate enterprises, analyzed the necessary and the possibility of utilizing mezzaninefinancing in our real estate industry and gave some suggestions about how to developthe mezzanine financing. The purposes of this paper are solve the financingdifficulties of some real estate enterprises by mezzanine financing and satisfy theneeds both of the investor and real estate enterprises, also expect to perfect the realestate financing system in our country.