Design Of Chinese Real Estate Investment Trusts Pattern

Real estate industry witnesses the bottleneck of funds when developing at a fast pace, meanwhile the public hold huge capital seeking more profitable investment channels. The real estate investment trusts (REITs) can bridge the two, but confront the pattern choice problem in China. This paper gives a deep insight into the mature patterns of REITs in foreign countries and analyzes the latest experiments of domestic trust industry in developing REITs, and points out that there exist unsolvable problems with the trust mode,and the corporate entity pattern doesn't apply either. China should design Chinese Real Estate Investment Trusts pattern (C-REITs) based on the current financial market and law environment and enact the specific laws. This paper then presents the functions of C-REITs in detail, and finally gives further analysis on the policy aspects.