The Study On The Financing Way Of Hechuang Real Estate Company

The real estate industry is a capital-intensive industry, which has the financing needs of large amount and long duration. It plays an important role in China’s national economy, but for a long time because of the external environmental causes and internal reasons, the financing channels is very limited, especially the small and medium-sized real estate enterprises. In recent years, real estate enterprises financing situation is more severe due to a series of policies to restrict the financing of real estate,so how to broaden the financing channels, and solve the funding gap has become a pressing matter of the moment of real estate enterprises. Hechuang Real Estate Company, a Real Estate Company in the growth stage of medium, its source of funds is very single and too focused on bank loans,, which not only increases the risk of financing, but also affect their long-term development. So it is an overwhelming trend for Hechuang Real Estate Company to explore the suitable financing combination and improve the traditional financing way, so as to find a integration of innovative financing way, and then meet the financing diversification trend.Depending on existing financing theory and research results, Hechuang should explore the best financing way that fit the characteristics of financing environment of Hechuang and tries to explore the way of non-bank financing for Hechuang Real Estate Company at the present stage, so as to improve the current problem of financing. The main mode of financing of the current real estate enterprises are endogenous financing, bank loans, IPO, the issuance of bonds, project financing, private equity investment, cooperation and development, which all has advantages and disadvantages. The most severe problem of Hechuang company is the limited financing channel, but what we should not ignore is that it also has the external opportunities and internal strengths, so it has the feasibility of financing innovation. Non-bank financing choice is influenced by many factors, such as the enterprise life cycle, the project development stage, the financing cost and efficiency as well as its own advantages and disadvantages. To choose the financing way, we need to consider the above factors. Based on the different factors and principals above, the non-bank financing way for Hechuang company we choose is different, so in order to identify the most suitable financing mode, we should consider the different factors.