The Research Of Real Estate Financing Channel Multiplication

Real estate industry is classified as a capital-intensive industry which needs a lot of capital as well as a long use cycle. In general, it' s essential to finance by financial tools in order to meet theirs capital demand.In a long period, there is a common problem in China that most of real estate enterprises haven' t adequate own capital. Without a multiple financial system as a support, they have to accumulate capital by borrowing money from the bank. As a result, the commercial bank directly or indirectly undertakes market risks and credit risks of real estate market operation. At present, the credit risks in commercial bank have been a more and more serious issue which badly effects smooth development of China' s economy. Therefore, it' s crucial to establish a diversified financing pattern rather than only rely on loans of commercial bank.In this article, the author designs a new diversified financing mode on the basis of developed countries' financing experience and China' s special economic backgrounds, namely, to establish a diversified financing mode whose main body is bank credit financing, simultaneously, assisted by stock market financing as well as collective operation with other various financing approaches. In this mode, enterprises can build a reasonable financing structure to balance risk and efficiency via choice of finacing methods. However, real estate financing reformation is not only with. a strong social and economic effect, but also needs guidance of advanced theory and complete institutional environment, at the moment, we haven' t the examining theory instruction and the consummation system environment. So, we should treat real estate financing diversification reformation as a step-by-step process, rather than a great leap way. This article offers a set of measures to realize this new mode.