Study On Real Estate Investment Trusts In China

The real estate industry has always been an essential part of our economy and it is also a highly capital-intensive industry. At present, there are many obstacles in the real estate companies influencing the subsistence and further development, among which the blocked financing channel is the biggest one. It mainly shows in the following aspects: the increasing difficulty in getting the bank loan, high threshold of IPO and a lack of new real estate financing tools.The real estate investment trusts (REITs) first emerged in America in 1960s. It has a sizeable scale after 40 years' development. During this 40 years', not only did REITs solved the financing problem for American real estate economy, but also enriched the investment products in the capital market. The purpose of this paper is to analyze the necessity and feasibility of developing REITs in China and put forward the approachable REITs mode for China, through comparing the experiences of America and some Asian countries.This paper consists of seven parts. Part one expatiates on the background, researching aim and methods. Part two is the general introduction to REITs, including its characteristics, advantages, and the comparison between REITs and some similar products. Part three introduces the developing history of REITs in America and Asian countries, and make a comparative analysis on American mode and Asian mode. Part four analyzes the necessity and feasibility of developing REITs in China. Part five points out the present obstacles of developing REITs in China and gives the correspondent advices. Part six compares corporate funds and contractual funds, open-end funds and closed-end funds in detail, and concludes on an approachable mode of REITs in China. The last part summarizes the whole paper and makes an expectation on the China's REITs.