As an important part of the financial market, the real estate financial market can be classified according to various standards, such as market level, repayment period, regional scope, transaction methods, service objects, and other standards. The more important categories are described below.
According to different service objects, the real estate financial market can be divided into the real estate financial market and the real estate financial market
1. Real estate finance market
The real estate financial market refers to the market in which banks or other financial institutions conduct financial financing for housing reproduction. Among them, the residential finance market occupies a very important position in the real estate finance market. According to the different modes of the financial system, the residential financial market can generally be divided into a free residential financial market and a state-guided residential financial market.
2. Free housing finance market
In western countries, the free residential financial market is a market that is formed by private financial institutions as the main business entity, based on residential mortgages and is intertwined with various credit networks, which is composed of primary and secondary markets. The borrower and lender of residential mortgage credit have a dual relationship, that is, the borrower is both the debtor and the lender; the lender is both the creditor and the mortgagee. The borrower and the lender are based on the contract. To increase the liquidity of residential mortgage funds, financial institutions can re-trade residential mortgage bills or issue residential mortgage bonds, which constitute secondary market operations. Secondary mortgage institutions use the private residential houses that were originally mortgaged by residential investors as collateral to issue bonds to the society, thus forming a complete operating mechanism in the residential financial market and ensuring the virtuous cycle and normal turnover of residential funds. To maintain the stability of the financial market and promote the development of the housing industry, the government makes appropriate adjustments to the free financial market and adopts relevant laws. Establish specialized agencies to participate in market activities, supply or absorb funds in the market, provide residential trust insurance and guarantees, and other measures.
3. State-guided housing finance market
It refers to a residential financial market controlled by the central bank, with relatively stable lending conditions and more generous credit conditions than the free market. Generally speaking, state-guided markets are less subject to market volatility, have longer borrowing periods, and lower interest rates. The central bank lends capital through intermediaries such as housing credit cooperatives and housing companies and raises housing investment and credit by saving and issuing bonds. In the housing finance market guided by the state, the government’s control regulation penetrates into all levels and links of the financial market, with a high degree of concentration and unity, and can make full use of credit leverage to adjust the supply and demand of funds, to obey the overall development of government housing planning and overall interests.
4. Real estate financial market
The real estate financial market refers to the sum of the transaction activities that use the land as collateral to obtain funds and credit from financial institutions. Real estate finance includes agricultural land finance and municipal land finance. Its main business is to use the land as collateral to raise financing funds to achieve the purpose of developing and utilizing land. Real estate finance generally conducts business in the form of a bond, which has the characteristics of reliable creditor’s rights, low-interest rate, long loan repayment period, and safe operation. It is a business that banks are more willing to engage in. The real estate financial market and the real estate financial market are not completely separated, they are closely related, they influence and interact with each other, and together they constitute a complete real estate financial market.
5. According to the different market levels, the real estate financial market can be divided into primary market and secondary market
1. Primary market
The primary market, also known as the primary market, is the initial transaction market of real estate funds and the basic part of the real estate financial market, mainly including various credit services provided by financial institutions to those who demand real estate funds. Issuance transactions of new real estate securities and financial services affiliated to the above-mentioned credit and securities business, such as government agencies, trust agencies, insurance agencies, etc., guarantee real estate credit and securities issuance. Transactional activities such as insurance and trusts.
There are many types of real estate credit businesses, which can be divided into land development loans, construction loans, and personal purchase of residential loans from the different aspects of real estate development. The objects of real estate credit are very complex, including governments at all levels, real estate enterprises, industrial and commercial enterprises, and individuals. The real estate credit funds are mainly used for various loans, entrusted loans, and the purchase of bonds. Deposit reserve. Pay taxes, etc.
To reduce the credit risk, the primary market of real estate finance generally adopts the mortgage method as the usual credit method. In addition, the issuance of real estate securities is also a credit financial tool often used in the primary market, mainly for the government. Relevant financial institutions and development enterprises raise real estate construction funds. Such as housing bonds issued by the central bank guaranteed by the state and bonds issued by real estate companies with real estate as collateral.
Mortgage bonds issued by financial institutions mainly include the following types:
1. Bonds issued with designated real estate as collateral
For example, a bank-issued a mortgage loan on a house and then issued bonds of the corresponding denomination with the house as collateral, and the ownership of the house was kept by a trust institution;
2. Centrally issue bonds of different denominations with a large amount of pledged real estate as collateral, which is purchased by investors.
3. Several institutions jointly operate real estate mortgages and jointly issue bonds. For issuers, real estate bonds are a means of financing credit, and they need to pay a certain cost—interest income paid to investors; for investors, they are an investment tool that can bring capital appreciation. In the primary market, insurance agencies and state agencies provide insurance for real estate credit. Guarantees and guarantees act as guarantors and insurers for loan repayments; trusts are responsible for keeping the collateral.
Secondary market
The secondary market is the re-trading and re-circulation market of real estate credit, and it is the core part of the real estate financial market. The secondary market is created to adapt to the liquidity of real estate credit funds and to balance the deposit and loan structure of various financial institutions. Usually a regional market, the main transaction object is real estate securities transactions. In the primary market, financial institutions lend a large number of funds. To meet the requirements of new capital demanders, financial institutions often re-trade the original real estate credit, sell the real estate or bonds that were originally used as mortgages, and obtain funds. Lending to those in need of funds. For investors in real estate bonds, the secondary market is where they sell real estate bonds to meet their liquidity needs. On the secondary market, most transactions are conducted between banks.
According to the market transaction method, the real estate financial market can be divided into the agreement credit market and the open market.
1. Protocol credit market
The agreement credit market is directly confronted by the supply and demand sides, and the transaction is conducted according to the principle of voluntariness and mutual benefit. The transaction price is negotiated by the transaction parties in the loan agreement, and the range of transaction customers is relatively stable. According to different financial instruments or different transaction objects, the agreement credit market can be divided into various types, such as the housing special savings deposit market and the sporadic currency deposit market. Housing special loan market. Real estate mortgage market, etc.
2. Open Market
The open market is based on the repayment period and can be divided into the money market and the long-term capital market.
1. Money market.
The money market is the short-term capital market, which refers to the place where financial instruments with a maturity of less than one year are traded. Its main functions are: first, it can make up for the short-term deficit of enterprises and short-term deficits of the government, and can quickly invest their short-term surplus; Bank deposits can be effectively aggregated in the national credit market; thirdly, it can adjust the temporary and cyclical surplus and deficit of most enterprises, households, and governments.
2. Capital market
The capital market, also known as the long-term capital market, refers to the place where financial instruments are traded for more than one year, including the long-term credit market and the securities market. In addition, according to different real estate financial businesses, the real estate financial market can be divided into real estate savings loan market, real estate mortgage loan market, and real estate.
