Yi Cheng, Huiyi Mao

(School of Finance, University of International Business and Economics)

Abstract：

The release and implementation of new regulations on real estate financing indicate that the macroeconomic regulation policy of deleveraging and debt reduction in China's real estate industry remains unchanged. Compared to on balance sheet liabilities, the risks and destructiveness caused by implicit liabilities in real estate enterprises are stronger. This article provides a detailed discussion on the risks, causes, and governance strategies of implicit liabilities in real estate enterprises. The purpose is to draw widespread attention from the whole society to the issue of implicit debt in real estate enterprises, and to take effective measures to prevent and control it, eliminate the safety hazards buried by implicit debt, and help the real estate industry achieve its goals of deleveraging and reducing debt.

Key Words：

new regulations on real estate financing, implicit debt governance measures