Research On Guarding Risk Of Real Estate Investment Trusts By Law

As a new investment and financing tool, the Real Estate Investment Trusts (REITs) has been introduced to China since 2003. After which, its tendency of development is obvious and investors pay closer attention to it. However, its development time is short, the relevant policies and regulations are not perfect either, which make the REITs to face a serious risk both in the internal and external. Therefore, in order to restrain the risk and provide a safe and stable legal environment for the development of REITs in China, it's necessary to strengthen the research on guarding risk of REITs by Law.This dissertation employed the method of comparative analysis to address the risk control mechanism of REITs from the perspectives of law. Firstly, the dissertation comprehensively reviewed the risk evading legal system of REITs in foreign counties and regions. It also made a brief analysis on it. Secondly, the article described the development as well as the risk guarding legal system of REITs in China. It classified the Chinese REITs's risk into internal risk and external risk. In the end, the dissertation put forward to establish the risk control mechanism for Chinese REITs through internal control and exterior supervision. On the one hand, the paper suggested improving the management structure of REITs's operation organization, establishing the internal risk control and warning system as well as strengthening the building of information disclosure system. On the other hand, it put forward to enact special laws on REITs, perfect legal guarding system, improve the mobility of Chinese REITs as well as reform the existing financial supervision mode.To sum up, only when the integrated use of multiple methods, such as economic, administrative and legal means, can the development of Chinese REITs be protected.