Study On The Application Of Asset Securitization In Chinese Real Estate

China’s real estate started as the establishment of the Beijing City Development Corporation in 1980. However, as house prices climbed continually, people’s complaints became stronger and stronger, so that the government began to so introduce a series of tightening policy of the real estate industry, of which the "Five Rules of the State" is the most representative house purchase and mortgage quota policy. For real estate enterprises, the traditional financing ways mainly include IPO, bank loans and the issuance of bonds. While, as the quota policy launches, a lot of property developers in China are financially-strapped and have faced with a fall in both prices and transaction volumes. It’s getting harder and harder to access funds by traditional financing ways, so the innovation of financing model is imperative.In our country, after the government’s tightening policy, the problem of fund shortage in the real estate enterprises crops up frequently, so develop innovative and effective financing ways is an urgent need for the real estate. As the most important innovated financial instrument in the last 40 years in financial field, asset securitization has become an important way of financing, it can not only reduce the cost of financing effectively, but also has an edge in strengthening the capital liquidity. Therefore, the practical research on real estate’s asset securitization funding model has great realistic significance.Since S enterprise is a typical enterprise who applies asset securitization, this paper selects the S real estate enterprise as the case, mainly studies asset securitization in Chinese real estate. It deeply analyzes the positive effect of asset securitization, and offers a train of thought for the sound development of China’s real estate industry.