Urban Rebuilding Financing Innovation Based On Real Estate Investment Trusts

Real Estate Investment Trusts(REITs)started from America in 60s of 20th centre, and then spread to Europe, Australia, Japan, Korea, Hong Kong and Taiwan. REITs plays an so important role in widening investing channels, integrating real estate market, cultivating and promoting capital market, and it also has a great meaning to the whole social development. In generally speaking, REITs chooses to be listed on stock market. Its primary business is real estate management and raising funds in trust plans. For the real estate industry itself REITs provides a finical channel besides taking a loan from the bank. It is also a perfect financial product for retail investors based on its stable profit and low risk. During the last decades REITs made a great improvement and have been set up in more than 20 countries. This situation all benefits from the characters of REITs which are greater mobility, better stability, high profit and low risk.During these years a large scale of urban rebuilding is taking place all over China along with the extending of urban definition and the process of urbanization. As one of core problems in urban rebuilding, financing has affected the efficiency of urban rebuilding badly. REITs is a typical financial innovation product has got a highlight in China of recent years. It will be an innovation to combine the REITs and urban rebuilding, and not so much study has been done in China now. However, we still could see the feasibility and its value of creating urban rebuilding investment trusts. Some REITs theory outcomes in domestic and overseas in recent years are present firstly. Based on these theories the author gives the definition, law characters, classification and so on. It will contribute to set up urban rebuilding investment trusts of combining those basic definitions. Then a feasibility study of urban rebuilding investment trust has been done. By accessing to the mode of SWOT it concludes that it is possible to combine the concept of REITs with urban rebuilding. Chapter 4 is the core of this paper. In this chapter the principle, the organization structure, and investment design are all proposed. At last the author analysis the potential risk of urban rebuilding investment trust and an in-out rick control system is set up.