Analysis On The Development Issues Of Real Estate Investment Trusts In China

At present, real estate industry had developed into a key stage in China. But, due tothe changes in macro-economic situations and the release of relative policies andregulations, many enterprises in this field encountered a serious problem in financingchannels. To handle this situation, these enterprises must seek for new financing channelsfor capital actively. First, this paper introduced the financing channels used by real estateenterprises currently and relative weakness in these financing channels, and then raise thedevelopment problem of real estate investment trusts (REIT) in China. This paper studiedthe necessity of REIT's development in China according to the following subjects: capitalmarket, bank liquidity risk, real estate financial market in our country and efficientinvestment channels. And with the analysis on real estate financing, investment needs,potential investors and the investment features of REIT, the paper draws the conclusionthat there are some practical conditions to develop REIT in our country. At the end, thispaper gives some policies to ensure the REIT's development in China, according the realsituations in our financial market and the conditions and trends in real estate field.