Since 20 10, the state and local governments have continuously introduced regulatory policies for the real estate industry, such as restrictions on purchases, prices and loans. By the middle of 20 1 1, the regulation began to show results. Real estate projects (especially residential projects) in first-tier cities such as Beijing, Shanghai and Guangzhou have generally suffered from falling volume and price, and the phenomenon of low-priced selling of real estate in second-and third-tier cities has gradually increased. It is generally believed in the industry that with the continuation of these regulatory policies and the structural tightening of credit policies for real estate development, the cash flow and even survival of most housing enterprises will face enormous challenges.

In order to "save themselves" and "spend the winter", starting from 20 1 1, more and more real estate enterprises explore changing the original financing mode, and raise capital from the people by setting up or participating in the establishment of real estate private equity funds; In addition, some traditional fund management companies are also aware of the financing difficulties of real estate enterprises and the investment desire of the market, and participate in the establishment and collection of real estate private equity funds. As a result, it constitutes the industry background of the explosive growth of real estate private equity funds.