What are the general financing methods of real estate enterprises?

With the rapid development of China's real estate industry, the real estate industry is playing an increasingly important role in the national economy, and its development and growth cannot be separated from the growing demand for funds. Taking Evergrande Group as an example, this paper analyzes the present situation and existing problems of its financing channels, and it is urgent to build a multi-channel real estate financing system. On this basis, this paper puts forward some suggestions.

Keywords financing channels: bank loans, equity financing, debt financing.

First, the status quo of financing channels of Evergrande Group

According to the data of the annual report of Evergrande Group in 20 16, the total cash inflow of financing of Evergrande Group in 20 16 was about 572.568 billion yuan, an increase of 99.60% over the previous year. The increase of its financing demand is inseparable from the rapid growth of land reserve and real estate development in recent years. The following is a concrete analysis of the main financing channels of Evergrande Group at present.

(1) Bank loan

Usually, most real estate enterprises choose bank loans as the main financing channel because of its relatively low cost.

It can be seen from the annual report that in 20 16, among all financing sources of Evergrande Group, the total loan from guarantee banks was 2093 10 billion yuan, accounting for 36.32% of the total financing, an increase of 9 1.9 1% over the previous year, and the financing scale ranked first. Bank loans account for the proportion of financing, including interest expenses and exchange differences arising from foreign currency loans.

(2) Equity financing

Listed real estate enterprises mainly carry out equity financing by issuing new shares and allotment. Evergrande Group was successfully listed in Hong Kong in 2009, becoming the domestic real estate enterprise with the highest market value in Hong Kong. Display 20 17 1 1