The Study of Chinese Real Estate Enterprises Issuing Perpetual Bonds Financing: Advantage and Risk

Yao Jin

Management School, Jinan University, Guangzhou, China.

DOI: 10.4236/ajibm.2014.412076                

Abstract

In recent years, with the regulation of national policy, Chinese real estate market has been rapidly cooling, and real estate enterprises also have difficulties in financing. Perpetual bonds as a historic mezzanine financial instrument abroad was formally introduced into China in 2013 and its own characteristics can satisfy the current needs of the real estate enterprises. This paper analyzes the plight of the real estate market and real estate financing under the current environment, discusses the issue of perpetual debt financing, and analyzes the advantages and risks of issuing perpetual bonds in multiple aspects.

Keywords

Real Estate, Financing Difficulties, Perpetual Bonds, Financing Risks

Conflicts of Interest

The authors declare no conflicts of interest.

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