The Establishment And Application Of Real Estate Enterprise’s Credit Investigation System In China

Credit investigation is the cornerstone of healthy development of industry and evenour country, the establishment of credit system can effectively reduce informationasymmetry of credit in market transactions, reducing the adverse selection and moralrisk of credit transactions. The real estate industry，as one of the pillar industries of thenational, which is the located in the middle of chain of the national economy, isstimulating the increasing employment, the improving the living environment and otherareas. With the rapid development of the real estate industry, the real estate marketbecomes confusion as a result due to lack of awareness and effective market regulation.The frequent incident of dishonesty harms the interests of the government, banks andconsumers greatly. In this context, the paper proposes to establish the real estateindustry credit investigation system, which can effectively reduce informationasymmetry in credit market transactions and realize the sharing of credit information,reduce the credit risk of financial institutions, protect the legitimate rights and interestsof consumer. The establishment of the real estate investigation credit system also canhelp to form a healthy, stable, fair, honest and trustworthy real estate marketenvironment.Firstly, the system of credit investigation and related concepts of creditinvestigation and theories are described by the author, followed by the analysis of thenecessity and feasibility of the establishment of credit investigation system for realestate companies, pointing out the establishment of credit investigation system caneffectively reduce credit risk and maintaining the stable of the real estate market. Alsothe paper analyses the condition of establishment of credit investigation systemcurrently. Secondly, the paper describes the comparative analysis of three differentcredit investigation systems of the United States, Europe and Japan. Then the authorproposes the establishment of the current real estate credit investigation system shoulduse the model of coexistence both public credit and private. The author points out that inthe early period establishment of credit investigation system, the government should bethe dual identity of both operators and managers, who can take the great advantage ofcollecting information of the real estate enterprises all-around and promote thedevelopment of third-party levy agencies vigorously. With the gradual maturity of thecredit market, the government will gradually dilute the identity of the operator’s identity and shift to the identity of supervisor, who mainly dominates the private credit market.Finally the paper tries to build the credit investigation system of China’s real estateindustry, including a total of six content areas, which are the database of creditinvestigation, the credit evaluation mechanism, the mechanisms of dishonestydisciplinary, the mechanism of credit risk transformation, the education mechanisms andthe establishment of credit investigation management. At the end of the paper, theauthor selects the credit investigation system of real estate market in Chongqing as thecase study, presenting the realistic path to build the credit investigation system ofChina’s real estate industry.