Research On Mode And Development Of REITs

REITs (Real Estate Investment Trusts) has been a trend globally and enjoyed outstanding growth in Singapore, Hong Kong and Japan since 21th century and take great part in global real estate financing market. Facing the mentioned tough financing environment, real estate industry is eager for new financing ways aiming to developing diversified financing system where risk can be diversified. REITs, which originated from America and contributed much to development of American real estate industry, not only can provide an additional financing channel for real estate corporations, but also disperse risks, give investors low-risk investment opportunities and drive financing market to be more perfect and effective. As for China, State Council issued many measures about the Low-rent housing to improve the housing situation of low-income groups to a certain extent in2011, This is a good opportunity to the REITs. REITs can provide the Low-rent housing more diversified financing channels and disperse risks, finally, contribute to reform and innovation of real estate finance market.In the paper, the writer did research about the policy environment,economic environment and developing environment of REITs in China, lessons of REITs development in foreign countries. According to detailed analysis, we see China has been ready for developing REITs; the Low-rent housing is the starting point, but legal & financial environment are not enough. As for laws, we should pass special laws about REITs. As for finance market, we should develop institute investors and so on.