Private Placement of China-Listed Real Estate Firms: A Conceptual Idea

Yuping Ning () and Rohaya Binti Abdul Jalil
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Yuping Ning: Faculty of Built Environment and Surveying, Universiti Teknologi Malaysia, Johor Bahru 81310, Malaysia
Rohaya Binti Abdul Jalil: Faculty of Built Environment and Surveying, Universiti Teknologi Malaysia, Johor Bahru 81310, Malaysia

JRFM, 2023, vol. 16, issue 12, 1-23

Abstract: This article conducts a review of the literature on private placement and analyzes the risks facing China’s real estate companies. It argues that, within the framework of China’s hybrid economic model, private placement can serve as a market-oriented financing mechanism and risk mitigation strategy beyond the traditional banking system. The article focuses on the characteristics of private placement, prevalent hypotheses, and influencing factors. It also traces the evolution of financialization in the global real estate industry, outlines the development model of China’s real estate sector, and discusses the challenges and risks it encounters. Private placement offers various advantages, including reducing corporate leverage, strengthening working capital, and addressing information asymmetry issues. However, existing research in this field is still insufficient. Therefore, future research can provide a more robust theoretical foundation and guidance for policymakers, investors, and businesses.

Keywords: private placement; risks; real estate; hybrid economic model; real estate; risk mitigation strategy (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2023
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