Legislative Proposal Of Running Structure And System Of Real Estate Investment Trusts In China

Real Estate Investment Trusts(REITs for short) is an effective financing and investing tool which belongs to a trust product.In essential,REITs belongs to capital trust which bases on the trust principle legally,and exerts the advantage of trust as"trusted by others,financing for others".A good REITs running structure not only reduces risk and satisfy the real estate enterprises demand for money,but also reduce many risks from operating REITs by trustee.Trustee plays significant rloe in trust legal nexus,it is said that trustee is the embodiment of trust legal nexus.Many countries had enacted special provision about trustee.The first part is refered to system of American Real Estate Investment Trust. In China,REITs is an Emerging business with complicated Organization Structure, in order to make for you to get an overview about REITs, this chapter will be unfolded from the following five respects:1.Character and types of American REITs.Defination of REITs, character and types of REITs are introduced.General development of American REITs.It makes reader have a general comprehend to the American REITs complicated progress from rise to fall.3.Running structure analysis of American REITs. Since 1960s,REITs first appeared in the US. the traditional running structure of REITs has changerd into some complicated substructure, which immdiately concerns the trust relationship in REITs. This section will focus on the most widely used running structure in the US: the traditional, umbrella-partnership and DownREIT.4.Trust relation and risk analysis in American REITs。Based on the preceding part, this section will demonstrates the trust relation in REITs in details, introduces the trust risk in REITs simply and also amplifies the core positon of trutee in REITs.5.Duty and right of the trustee in American REITs.Due to the length of this article, the duty and the rights of trustee will be introduced according to the author's opinion.1)The right of trustee: it includes: handle of the trust affairs, supervise and dismiss the hired trust property keeper, invest, and get compensation and reward.2)the duty of trustee:it includs: comply with related laws when dealing with trust affairs, deal with trust affairs according to trust documents, cautious management loyalty, withholding and collection, disclose infomation in time, inrespective management and in- person management, accept supervision, record, explanation and maintain secret.The second part analyses the actual status of Chinese REITs and the problem of Chinese quasi-REITs.The paper introduces the first quasi-REITs of china—"Auchan trusts",which discloses the weakness of REITs in china by comparising chinese REITs and American's.The third part states why we need to develop Chinese REITs system.This chapter tells us the reason and necessity of improving REITs of China on the background of China's real estate financial market capitalizing contradiction after national macro control of real estate market.The fourth part focuses on legislative proposal about Chinese REITs'running structure and legal system.This paper proposes legally from four aspects by studing trust law in China, Management Regulation on Trust Investment Company, Management Regulation on trust fund, The Law of Investment Securities Fund and American REITs. The first proposal is about REITs running structure.The second proposal is about trustee's duty . The third proposal is about trustee's safe investment rule.The last proposal is about trustee's taking in charge and regulator.The essay tried to push the course of legislation of Chinese REITs by anylasing American REITs's running structure and trustee system.At the same time,some writer's opinions are not mature which is only exploratory research on Chinese REITs.