Credit Rationing And Financing Of Small And Medium-sized Real Estate Enterprises

Home ownership is one of the common ideal mankind for centuries. With the development of society, this historical responsibility fell on the Real Estate Industry. Rapid urbanization process promotes our country's Real Estate Industry developed quickly in recent years. Until 2005, China's real estate enterprises have reached 56290, more than 90% of which are the small and medium-sized real estate enterprises. As long as the macroeconomic control measures promulgated and the financial institutions tightened, Real estate financing capacity of small and medium enterprises weak gradually exposed. Financing difficulties become the biggest problems, which will affect the survival and development of small and medium enterprises. If can't be resolved, this issue will become the hidden danger of China's Real Estate market.This status is in-deathly analysis in this paper. With the credit rationing theory, this paper expounds reasons for the difficulties of China's small and medium-sized real estate enterprises in financing. And on this basis, raises some methods to solve these difficulties for the current financial status.In this paper, the development of China's Real Estate Industry was firstly outlined. Then, this paper analysis the necessity and feasibility for the small and medium enterprises to long-term exist and develop in China's real estate market. In accordance with the relevant domestic and international standards and the characteristics of China's real estate industry, this paper defines what small and medium-sized real estate enterprises are. In the third chapter, this paper introduces credit rationing theory. Through the explanation of credit rationing, which are caused by adverse selection and moral hazard, provides theoretical support for the analysis of small and medium-sized real estate enterprises'difficulties in financing. Then, combined with the status of China's economic development, this paper reached the conclusion of double credit rationing. In the fourth chapter, this paper combines credit rationing theory and financing status of China's small and medium-sized real estate enterprises. Firstly, analysis the financing issue of them. Then with the credit rationing theory, this paper notes that the main cause of this situation is credit rationing. In the fifth chapter, this paper describes the main financing methods of China's real estate enterprises, such as Bank loan financing, equity financing, debt financing and so on. But these financing methods are not the most suitable for small and medium-sized real estate enterprises to use. Then with characteristics of small and medium-sized real estate enterprises, this paper raises some methods more suitable for small and medium-sized real estate enterprises to use, such as improving the existing bank loans financing, promoting the cooperative development and mortgage financing. At the same time, we can introduce private capital, explore various financing channels, and then help our small and medium-sized real estate enterprises to overcome difficulties in financing.