IDEAS home Printed from https://ideas.repec.org/h/spr/mgmchp/978-3-030-49032-4_11.html
   My bibliography  Save this book chapter

The Leverage Game: From Offshore to Onshore

In: Understanding China’s Real Estate Markets

Author

Listed:
  • Dave Chiou

    (Colliers International)

  • Joe Zhou

    (CBRE Group)

  • Megan Walters

    (Allianz Real Estate)

Abstract

In the years after China’s housing reforms in 1998, demand for both residential and commercial properties soared, and developers responded by rushing into aggressive land bids and property construction to meet market demand. For most Chinese developers, residential development are always preferred over commercial assets, as residentials have a broader customer base and it is easier to apply a strata-titled sales approach to increase asset turnover and improve profitability. However, during the recent consumption boom, Chinese developers have transformed to include office and retail development in their portfolios. Aggressive project launches translated to high leverages for the Chinese developers. While traditional bank loans remain the main source of funding, in recent years Chinese developers are also adapting a more flexible approach in securing their working capital and lowering their cost of funding. In this chapter, an overview of the main funding mechanisms for Chinese developers is discussed, which includes offshore corporate bonds, onshore corporate bonds, perpetual bonds, trust firms, peer-to-peer (P2P) lending, crowdfunding, commercial mortgage-backed securities (CMBS) and asset-backed securities (ABS), real estate investment trusts (REITs), and joint ventures and strategic alliances.

Suggested Citation

  • Dave Chiou & Joe Zhou & Megan Walters, 2021. "The Leverage Game: From Offshore to Onshore," Management for Professionals, in: Bing Wang & Tobias Just (ed.), Understanding China’s Real Estate Markets, edition 1, pages 139-157, Springer.
    • Handle: RePEc:spr:mgmchp:978-3-030-49032-4_11
    DOI: 10.1007/978-3-030-49032-4_11
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Deev, Oleg & Lyócsa, Štefan & Výrost, Tomáš, 2022. "The looming crisis in the Chinese stock market? Left-tail exposure analysis of Chinese stocks to Evergrande," Finance Research Letters, Elsevier, vol. 49(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:mgmchp:978-3-030-49032-4_11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.