The Study On Risk Management Of Real Estate Trusts In China

Since 2002,Chinese real estate industry has appeared the trend of overheating,it easily bring about the real estate foam.As the only one channel of real estate enterprises financing,bank will take the biggest risk.In order to prevent the real estate invest overage,121 document has been appeared from People's Bank of China in 2003.It has strictly limited loans from the bank to real estate enterprises.In order to make up the financing gap,real estate trusts suddenly emergence.In the next two years,real estate trusts developed rapidly,has gradually become the real estate's financing important channel.However,the real estate trusts' investment goal violates with our country's macroeconomic policy,so CBRC(China Banking Regulatory Commission) has appeared 212 document and 54 document between 2005 and 2006 to carry on the standard of the real estate's loan services,Simultaneously steps up to study newly Trust Company Policing Method,enlarges the evaluation to trust enterprises' qualifications and enhances the threshold of the trust industry.National macroscopic policy changes frequently,creating the huge policy-type risk for the real estate enterprises.Moreover,our trust industry still occupied the start stage,trust enterprises' internal management system is not perfect and trust enterprises itself has the managerial risk.According to The Trust Law of the People's Republic of China,the trust enterprises does not have to pledge the trust fund would not lost,and also do not have to pledge the lowest income of the trust fund.It finally causes the more risk of the real estate trusts shift to the trust investor.So it is necessary and urgent to research the risk of real estate trusts during the days of real estate trusts developing quickly and REITs conducting tests.The paper dissertates the issue step by step.The central part will be divided into five chapters:Chapter 2 "The real estate trusts summarization",mainly introducing the conception,category and distinctive mark.Chapter 3 "The present situation of real estate trusts",mainly introducing the present situation of real estate trusts in developed countries and China,summarizing the distinguishing feature of real estate trusts in China. Chapter 4 "The identifying study on the risk of real estate trusts",the paper classifies the risk of real estate into investment risk and operation risk,studies the risk from two aspects.Chapter 5 "The quantitatively study on the risk of real estate trusts",first,simply introducing the credit models from overseas,second,analyzing the credit models of adapting China's current conditions.Chapter 6 "The strategies of real estate trusts' risk",according to the thorough analysis of risks,proposed the risk management strategies,which mainly divides into macroscopic,the intermediate perspective and microscopic,to research.In conclusion,the article forecasts and puts forward the correlation proposal to the real estate trusts and risk management of REITs.