As a typical capital-intensive industry, the development of real estate industry depends on capital highly. At present, main sources of funding for real estate development includes commercial bank loans, own funds, sales of commercial deposit and advance payment. As it is difficult for real estate enterprises to raise funds in today's conditions through the issuance of stocks and corporate bonds, in addition to the limited own funds, the project funding would depend on commercial bank loans. In addition, large parts of the deposit and advance payment are personal bank mortgage loans. According to incomplete statistics, at present about 70 percent of funds devoted to real estate development and construction are from commercial banks, including housing consumption loans, real estate development loans, construction working capital loans and land reserve loans. Commercial banks in fact directly or indirectly, bear most of the real estate market risk and credit risk.
