Research On The Diversification Of Financing Mode Of Real Estate Enterprises In China

In recent years,the land prices rose sharply in China,the real estate industry policy changes rapidly and some real estate enterprises have increased demand for funds.Accordingly,the traditional mode of financing is difficult to meet their demand.What's more,the development of financial market in China has brought more opportunities for real estate enterprises to explore financing channels.As the representative of the real estate enterprises,Poly Real Estate has began to try new ways of financing,for instance,trust,private funds,foreign bonds and so on,which starts a diversified financing way.Poly Real Estate has been viewed as a research subject in this paper.Firstly,this paper introduces the main financing methods of Poly Real Estate in the past 10 years,such as equity financing,debt financing,bond financing,overseas financing and fund financing,including the basic situation,the use of funds,the prominent characteristics and the changing trend of each financing methods,and focuses on the analysis of private equity fund financing,which deduces that Poly Real Estate put diversified financing model into practice in 2011.Secondly,by comparing with Vanke and the industry,and through related financial analysis,the paper analyzes the six key issues of the diversification of financing,such as market growth,financing cost,capital structure,policy risk,financing risk and returns.The conclusion is reached that despite the fact that new financing has high cost of funds and risk,but the diversification of financing mode contributes to its capital structure,total risk and sales and earnings growth.Finally,the paper provides suggestions for our country's real estate enterprises in financing.