Financing And Risk Management Of China Real Estate

As the pillar industry of national economy, real estate industry plays a vital role in the development of the national economy. The real estate industry is a typical capital-intensive industry, so adequate capital support is necessary for the healthy development of real estate. Along with the changing in financial system, government macro control on china’s real estate industry, and the increasing growth of risks in the progress of real estate development and management, the real estate companies are facing more and more serious financial challenge. How to solve this problem has become an urgent issue to each of the real estate business. At present, financial ways of China’s real estate companies are not the same. Most real estate enterprises rely on bank loans, and only some large real estate companies have seeded financing by listing on the stock market. But for real estate enterprises, especially for some small real estate companies, there are only a few financing ways can be used. Therefore funds, real estate investment trusts (REITs) and other financial innovations have emerged. According to other’s countries’advanced financing model, opening up a wide range of financing channels for enterprises to provide a reliable domestic real estate capital protection has become an important issue. Also, accounting for the unity of financing and real estate financial risks, how to strengthen risk control and to build the system of real estate risk prevention has become an inevitable problem. In this paper, with the actual development of the domestic real estate finance and the successful experience from abroad, we will give some appropriate advices toward these two problems.In research methodology, this paper adopts qualitative analysis and quantitative analysis. And learning from western financial risk of realty and the rational cores of prevention theories, studying realty finance development, including its history and current status, prospects and its trend and a comparative analysis to different ways of real estate finance, we will provide financing mode selection for different types and sizes of real estate companies. On the base of analysis of various financing models, we will analyze the types of real estate financial risks, financial risk prevention system and its inherent relations. On this basis, based on the actual development of China’s real estate finance, this paper will make a reasonable assessment on the current development of real estate finance industry and make a scientific judgment to real estate financial risks. Also this paper will actively learn some experience from some advanced countries in the world of real estate finance, real estate Prevention financial risks, and promote economic development of the real estate, and offer the object model of real estate finance development of China and build the framework to prevent the risk of real estate finance system, to promote China’s real estate sustained and healthy development.In the structure of this paper, the article is divided into three parts, a total of five chapters. The first part is an overview of the real estate finance theory (Chapters 1-2),which introduces the concept of real estate finance, characteristics, and domestic and international real estate finance development. The second part is the real estate financing model (Chapter 3). In this part, this paper will make a comparative analysis to the mainstream real estate financing model of the current domestic and international real estate companies. On this basis, this paper will give the financing model adapt to china’s real estate development. The third part is the real estate financial risk management analysis (Chapter 4-5). In this part, this paper will introduce the concept of financial risk and give a description to the real estate financial risks. Also this paper will give an Analysis of the current real estate financial risk control problems. On this basis, real estate financial risk prevention system will be offered.