REAL ESTATE FINANCE IN CHINA

Abstract

The purpose of this thesis is to analyze in detail the development of real estate finance in China, as well as its implications and its future directions. Since the market oriented reforms in 1978, China has experienced many institutional and economic transitions, among which the considerable change of the structure of housing demand, due mostly to the privatization of state‐owned enterprises. However, it was especially since 1998 that the urban economy of China began to thrive, due to a period of unprecedented economic growth. The growth of real estate market was accompanied by the emergence of real estate finance which is increasingly becoming more important in the overall context of Chinese economy. Real estate finance is a branch of finance which aims at embracing real estate industry in order to adapt to the changes of external environment, both domestic and international. This also applies to real estate finance in China, since its economic structural contradictions due to urbanization plans, domestic and international financial reforms and financial complexity at a global level, have led to the creation of a kind of external environment which necessitates an efficient strategy to be handled.