In the tightening of bank credit, the developers can give priority to the use of listing, funds, trusts, bonds and other financing methods, and small real estate business is not as it is predicted that faces duanchui infringement. In practice, they have formed their own unique way of life, that is, more with the way of private financing, and formed a set of special credit rules and credit chain. After the introduction of 121 documents, the Chinese real estate industry about the financing of topic unprecedented warming, some real estate heavyweight have exclaimed, a large number of small and medium-sized real estate developers will be due to raise the threshold for funding and was forced out. Because the industry generally believe that small and medium-sized real estate business is heavily dependent on bank loans, and, unlike the big developers can full and give priority to the use of non bank financing channels such as listing, trust, funds, bonds and other so-called innovative financing tools.

Reality in the end how? Is not the central bank 121 documents issued and followed by a series of real estate financial austerity policy indicates that these small and medium-sized real estate developers are generally the brink of survival predicament?? I am engaged in real estate trader, estate training and real estate advisory contact the a large number of small and medium-sized real estate enterprises (projects) especially in third and fourth tier cities cases and proved, actually otherwise. Small and medium-sized real estate enterprises, especially small and medium-sized real estate enterprises in third and fourth tier cities have formed different to the largest real estate companies, the unique way of life and the financing chain, perhaps since they in addition to rely on bank loans this channel, more is by means of folk financing way and gradually formed a set of special rules of credit and the credit chain. Some rely on private association such as the chamber of Commerce in Wenzhou, some rely on a given circle such as students comrades even gamblers, and by a plays an important role in the local officials even the black and white two eldest brother to maintain and support a fiduciary relationship. Actually in the long credit chain in addition to the familiar arrival (quality) of the charge, guarantees and credit and bank credit, personality credit, commercial credit and other folk credit sometimes in private financing in the process of the role. I personally think that personality credit is the most important, but because of too personal and metaphysics, once the risk is also the largest. Because in the modern society worships money, once several times of interest to risk even to the completion of a person's life for the protection of life and wealth accumulation, most people will chose to take the risk. This is also a lot of top officials corruption and business fraud, the deadly cause. And commercial credit should be vigorously promoted and promoted, especially in the real estate industry chain in the longest industry. We all know that in fact has been, loaning phenomenon of the real estate industry is the most serious, and from Jianan to material to product a ring set, involving hundreds of industry. How to turn this spontaneous folk credit or banking sector said the triangle debts of commercial credit, really is a topic worthy of study and practice.

　　I recently by non industry friends learned that one called "Chinese commercial credit trading system", through their membership closed-end management, on the amount of the transaction system, credit guarantee companies and bank clearing agent a set of effective system design and professional approach in this regard made important and pioneering. I also and some of the financial sector and the industry's friends to study how to introduce the real estate sector to the real estate sector, the establishment of a "China's real estate industry chain business credit union," the agency.
When it comes to folk credit and private financing, it is undoubtedly the Wenzhou chamber of Commerce for having heard it many times.
A Wenzhou students I in the last year at Harvard University and Tsinghua University jointly "China Town

operators" training class is a line of the city of Wenzhou Chamber of Commerce, chairman of the standing, now a lot of complex real estate projects in the operation of a three line of the city. In a student's internal exchange meeting has been vividly described the Wenzhou Taiwan will be the way to raise funds. Wenzhou people have good project first of all not find a bank but in the chamber of Commerce member financing, of course, they have more stringent rules: one is limited to the Wenzhou people; second is the chamber of Commerce to actually play the very important third-party credit guarantee; the third is the principle of voluntary and high prices. Wenzhou private funds is relatively mature, and as I said above the "Chinese commercial credit guarantee system" is similar, only one is regional and folk, one is industry and professional.
In fact, private financing is also nothing more than two forms of equity and debt. Equity because it involves the company registration and dividends, company law and the articles of association of the company as the basis, compared with the general standard and standardization; and private debt financing we normally call for usury or illegal fund-raising. In the commercial and social reality, there are two iron the fact that can not be avoided, is due to a bank deposit interest after nine down has very low at an annual interest rate of less than 2%. Even so 23 trillion of the bank deposits, especially 11 trillion of the savings deposits - private capital is in urgent need of looking for investment products and channels, which is why the real estate trust products launched popular reasons. Even some illegal private capital has repeatedly succeeded.
Funds of natural profit determines the bound to the flow of high profit and high return industry - 15% - 30% of real estate industry average profit space destined is one of the folk capital chasing the preferred industry. Moreover, with the interest rate liberalization, the interest of rural credit cooperatives floating up to more than 10 points.
Actually in China's capital market, private capital has been surging plays a pivotal role, like when officials admit that the stock market private equity funds reached 800 billion yuan -- Imagine 11 trillion savings once burst the A shares how great power? Both shunt bank deposits to reduce the risk of banks, or regulating the private financing and make it accessible to industry standards, legal standards and common standards are a difficult and arduous undertaking. How to make the private capital to become a healthy, stable and active force in the development of the industry. In addition to the regulation of the government and financial institutions, industry associations, especially independent professional intermediary organizations will play a significant role in guiding and demonstration.
Here I especially want to emphasize real estate enterprise investment and financing plan management and time management, because China's real estate, due to historical reasons especially traditional financial policy and land policy, is the basic lever boot mode is often only 30% or less of the funds to complete the operation of a project. And in the existing financial policies (especially 121 documents) and land policy (especially 33 document strokes shoot hanging) and sales policies (pre-sale conditions and mortgage terms) integrated pressure, if real estate enterprises in the capital chain management on different stage financing ways and no overall, ahead of schedule and alternative considerations and arrangements, corporate and project funds chain will face at any time to fracture risk and crisis. So today's real estate enterprises, especially small and medium-sized real estate must establish the concept of full capital management and operation, in addition to their own professional personnel training, to more with the power of professional institutions and professionals, understand new financial derivatives and exit channel, and accelerate the learning from the advanced industry and international rules to get out of the extensive management and single capital form.
We have good reason to believe that, in the future of the real estate industry, in the way of the development of multi-level financing system to, the main financing channels for small and medium-sized real estate developers must be folk financing (including a disguised form of non real estate bank funds) that private capital, and the direction of the big developers will be the foreign capital is.
If you want to learn more about the private financing of knowledge, small make up recommend:
Private financing mode
The legal regulation of the present law to the folk financing
Problems in folk financing