The credit risk of real estate industry: A case study of Hangzhou

As a capital-intense industry, the real estate industry seriously depend on bank's support for fund. In recent years, the expansion of the real estate has owed a lot to the bank financing. In this process, the risk concentration in bank becomes a hot issue. This article pays attention to the problem how to relax credit risk of real estate. Taking the special background of transition economy in China into consideration, we first analyze the reason of credit risk of real estate industry deeply based on the description and analysis for realty industry financing. Then take the city of Hangzhou for example, we proceed to research whether the real estate bubbles existed in Hangzhou real estate market and the risk faced with banks under continuing boom of real estate market, ultimately this thesis put forward some suggestions from political and financial points of views.