China's Real Estate Financial Risk And Prevention Study

The real estate industry is, which has tight relationship with thousands of families, is the underpinning of the national economy. Although the real estate industry in our nation has become more mature after more than ten years' development, the real estate financing is in the initial stage. Nowadays, loan provided by commercial banks, mostly the state-owned banks, has been a significant source of money supply to the whole process of exploitation and sale. The co-existing relationship determines that development of real estate industry is bound to depend on the expanding of real estate financing. Correspondingly, the underlying risks of real estate industry are focus on commercial banks. These risks have the tendency to become more visible. Preventing real estate financial risk by taking effective measures is important to the real estate industry and even the entire national economy. The paper mainly analyses the real estate financial risks in our nation, and further puts forwards a series of measures to ward off real estate financial risks on the basis of American experiences. The paper includes four parts:Part one: analyze the evolution and actuality of the real estate financing in our nation. Summarize three parts of evolution of real estate financing in our nation, which includes the organizing system, scope and organization, law system. Meanwhile, analyze six aspects of actuality of the real estate financing in our nation and bring forward the serious real estate financial risks. This chapter is the foundation and the starting point of further analysis of real estate financial risks.Part two: firstly, summarize the real estate financial risk and propose the rational macroscopic monitor indicator system of real estate financing. Being the foundation of analyzing real estate financial risks, it is crucial to construct this system in reason. Secondly, according to the risk classification in "Basel Agreement", analyze the credit risk, the liquidity risk, the operation risk, and themarket risk in detail.