International Comparison Of Real Estate Investment Trust And Revelation To China

Real Estate Investment Trust (REITs) is a typical form of securitization of real estate asset, which mostly occurred at the mature stage of real estate market and finance market. It could help us not only maintain the characteristic of high yield of real estate investment, but also increase the stability of revenue as well as enhance the liquidity of real estate asset. The appearance of REITs propelled tremendously the international real estate market and finance market in the past half decade.With the rapid development of Chinese economy nowadays, on one hand, prosperous real estate market is in the urgent need of finance creation, on the other hand, investors are calling for more new investment products and wider investment channels. The need coming from these two aspects pushed the positive creation of real estate finance. The rapid growth of real estate trust project in 2003 met these needs and built a market base of Chinese REITs.As a mature finance creation of worldwide real estate finance, REITs have absorbed the attention of Chinese theory field and business field. In order to explore the applicability and detailed model of REITs in China, we must study and reveal the experiences and lessons of international REITs development. We must recognize that it is a functional finance creation in the certain situation of economy development, real estate market and finance system and market. Government always played very important role in the creation procedure by using legal method. Only on the basis of international comparison of environmental factors and legal regulation of REITs in different countries, can we find an applicable and sustainable way of REITs development in China. According to this clue, the whole report is comprised of three parts. The first part is a simple introduction of REITs. The second part compares the experiences and lessons of REITs development in USA, Germany, Australia, Japan, Singapore, Malaysia and Hong Kong. The third part analyzes the conditions of REITs development in China and puts forward constructive suggestions of REITs in China.