Financing real estate in China: the development of a real estate investment bond market in Tianjin

Following the establishment of the policy of reform and the opening up of the economy in the Peoples' Republic of China, the real estate industry has developed rapidly. Because of the dependency of real estate on the characteristics and immobility of property, the real estate industry has developed closely in relation to investment in it. With the scale of growth of real estate development, the problem of funding shortage has become more and more evident and this has now become a major restriction on the development of the real estate industry in China The paper takes Tianjin (one of the three municipalities under the direct jurisdiction of the central government) as its area of study. The paper examines the necessity for the issuing of bonds in the real estate industry to encourage funding; the feasibility of issuing real estate investment bonds and the strategies for such bond issues in Tianjin. The purpose of this paper is to examine ways to increase the funds thus widening investment channels and diversifying investment so that the real estate industry can establish itself. Because Tianjin has an important role to play in the economic development of China, it is a useful case study in understanding the development of the real estate sector in China