Comparison of Different Financing Methods of Real Estate Enterprises

Abstract

Since China reform and opening, the real estate industry has gradually developed into a pillar industry of China's economy. In recent years, the Chinese government introduced a tightening policy to limit the expansion of the real estate bubble, but also put pressure on the real estate sector, financing problems are imminent. This article investigates the theme of China's real estate enterprises different financing methods. This study selects two Chinese listed real estate companies as the case, analyzes the relevant data in the financial reports published by the two companies contemporarily. It compares the advantages and disadvantages of different financing methods. According to the analysis, companies that pay attention to internal financing, develop diversified financing channels, have strong corporate strength, and have financing methods that respond to government policies are more capable of financing. These results shed light on helping the choice of financing methods of real estate companies in China and further exploration of financing modes.