Real Estate Investment Trusts

Real Estate Investment Trusts is a new instrument of investment and financing appears in China recently. Not only it provides new financing channel to the developers, but also provides new financing instrument to the investors. It is welcome for its particular advantage. Real Estate Investment Trusts developed speedy especially after the Center Bank had contracted the policy of credit of the real estate. But our Real Estate Investment Trusts still has big difference with the REITs in the mature capital market of foreign country. It is not embodies the investment characteristic of the Real Estate Investment Trusts.The biggest advantage of trust product is its agility of design. But as to the trust products of China, the patterns are too single. In the system frame of China, Real Estate Investment Trusts has many modes to choose as property investment trusts, stock investment trusts and mortgage loan investment trusts. The trust company can innovate from the amount and the use of the capital, the range of the management and the control of the risk, etc. There are some problems of the law, the fluidity and the mode of the profiting. So it is necessary to innovate from the microscopy.