Legal System Construction Of Real Estate Investment Trusts

The real estate industry as a high-cost, long term and capital-intensive industry has been a pillar industry in china. As we know, the real estate has an unmovable, indivisible and high-cost trait which results in huge amount of real estate investment and low liquidity of assets, and is likely to bear too much risk burden. As a result, the development of the real estate industry is closely linked to the real estate finance. These years the development of the real estate industry has showed high-speed growth, but its financing method is sole and mainly depends on bank loan. The prosper real estate industry and the tightening real estate credit policy give a chance to C-REITs development.This paper is divided into five parts. The introduction describes the trait and the present situation of real estate, and then put forward the thesis-----REITs. REITs can not only balance the relationship of financing and investing, but also reduce the cost of financing and enhance the liquidity, which make the unmovable real estate become movable.The first part is the theory of REITs which includs REITs' conception, origin and types, emphatically analyzes the advantages of REITs. On the base of foreign experiences, I raise the inevitability and feasibility of C-REITs.The second part focuses on establishing legal system in REITs. Because of difference of national situation, economic advancement and perfection of legal system , the establishing conditions are also different. Based on comparison with the requirements of establishment in American, Japanese, Singapore and Hongkong REITs, this part emphasizes on the establishment conditions in American REITs, which provides references of C-REITs.The third part mainly elaborates American traditional REITs, UPREITs, DOWNREITs, Singapore-REITs, Japanese-REITs and makes analytical comparison with American REITs, Asian REITs in 10 aspects including legal structure, investment scope ,holding period, share restriction , dividend payment ,leverage ratio, tax preference, business scope, asset management. Beginning from the present C-REITs "Oushang Trusts", choices are suggested for developing C-REITs.The forth part mainly deals with the category of risks: market risk, agency risk, operation risk, legal risk. In order to avoid risks of REITs and further the stable...