On The Theory And Practice Of Real Estate Investment Trusts In China

Real estate industry cannot develop without financial support. Whether in real estate commodity production processes, or in the circulation area the real estate industry are required to have huge investment. Bank loans have been the major financial channels in the real estate industry in China,the real estate industry has become highly interdependent with the banking industry, but in recent years with the adjustment of bank credit policy, the real estate credit threshold has been increased continuously so that the financing costs of the real estate industry have been increased substantially and the financing channels have been greatly restricted. Since 2008, the global financial crisis leads to the serious difficulties of the real estate industry financing. In order to ease the financing pressure in the real estate industry, it is absolutely necessary to change the situation of the high dependence on bank loans of the real estate industry so that the real estate industry could develop more steadly and heathly by the stable financial support to the real estate industry through creating financial meathod as well as opening up more financial channels.As an IPO product of securitization,REITs is one kind of investment fund which is managed by professional investment institution and of which its comprehensive revenue is distributed to investors by proportion. Some developed countries share the experiences in the successful development of REITs, REITs played an important role in the development of real estate industry in these countries.In order to cope with the existing problems in real estate industry such as immature rent makets,irreasonable rent-sale ratios and the obvious constructure contradiction in real estate industry etc., The development of REITs can provide new financing channel for the real estate industry, reduce operation risks; to promote competition within the real estate industry, optimize resource allocation; to promote the real estate enterprises to improve their governance structure, improve the operational efficiency of capital; to meet capital investment needs, effective use of public capital; to enhance the information transparency of the real estate industry, to promote constant improvement of our financial system. That is to say,the establishment and development of REITs are of important significance both to the domestic real estate industry and to the social and economic development great significance,.Besides,, whether on the macro level, or on the micro level, whether form the angle of the real estate market, or from the perspective of financial system development, the conditions are mature to develop the REITs from the perspectiveness of the feasibilities of the development of REITs.In order to form a correct understanding of the development of REITs in China, the essay supply the standardization conception of REITs as well as the concrete suggestions of the development of REITs on the bases that we study the real estate financial theory and the theories relevant to REITs,,sort out the research literature at home and abroad,compare the REITs development in these developed countries and listen to the experiences and lessons,realize the feasibilities of the development of REITs in China combining with the actual national conditions. The essay is divided into six parts: The first part or the first chapter, Introduction, the main topics is to the significance of the topic,to sort out the research background and the recent research situation and to make clear the research contents as well as the basic research framework.The second part consists of the second and the third chapter, this part is to sort out the financial theories and theories relevant to REITs so as to supply the theoretical support for the following analysis and statements.The third part or the fourth chapter, this part is to introduce the developments of REITs in America,Europe and some of the developed countries or areas in Asia so that we could use the experiences and inspirations of the other countries to solve the problems in the process of the development of REITs in China on the basis of the international experiences of the development of REITs.The Fourth part includes the fifth and sixth chapters, this part is to introduce the current development of REITs in China,the practical problems in the process of development of REITs and the feasibilities to develop REITs in China.The fifth part or the seventh Chapter, this part is to form the system framework of the development of REITs including development conditions,legal relationships, operation risk management system,operation supervision and retreaval system so as to supply the standardization conception of REITs.The sixth part or the eighth chapter,this part is to explore the development of REITs and supply the concrete policy choices.