Because there is demand.
1. Bank loans:
Since the China Banking Regulatory Commission implements a list system for platform loans, most urban investment companies have been included in the regulatory and testing platforms, so bank loans are subject to certain restrictions. Due to the restrictions, most of the new credit and current loans cannot be issued. On the other hand, most of the assets of urban investment companies do not comply with the "Six Truths" principles required by the China Banking Regulatory Commission. Most of their assets are injected by local governments. Most of the bank loans it maintains rely on these land assets for mortgage guarantee. However, in early 2013, Document No. 463 issued by the four national ministries and commissions completely blocked this road, and urban investment companies will no longer be able to use it in the future. Land assets have been allocated for mortgage loans, so this path is becoming narrower and narrower. The current main characteristics of bank loans for urban investment companies are: moderate scale (limited by bank ratings, authority and loan scale), short term (generally not limited to the medium term) More than 3 years), the interest rate is moderate (generally no more than 10%), and the procedures are relatively simple.
2. Trust products:
Trust companies have always been interested in government products. For a while, they even compared government products and real estate products to the two driving forces for the development of the trust industry. Big promoter, at present, the characteristics of trust products are: moderate scale (determined by the characteristics of funds raised by trust companies), short term (one to two-year products are easier to sell), and high interest rates (at least 12% for one-year terms) , the procedures are relatively simple.
3. Urban investment bonds:
City investment bonds are currently the most ideal way for urban investment companies to raise funds. They have low threshold, large scale, low interest rate and long term. Although There are many approval steps, but as long as there is enough time, the possibility of approval is still very high, so urban investment bonds are the most coveted financing method for all urban investment companies.