Study On Development Of Real Estate Investment Trusts In China

The industry of real estate has been developed in a high speed due to bank credit in China from 1998 and become a supporting property and new rising point for country economy which plays an important role for keeping fast development in our country. However, because the development of the real estate in some districts is too fast and the second macroscopical control has been carrying out from 2003, the traditional financial path for the real estate in China is blocked. The real estate is an industry that requires a lot of capital and has a closed and advancing relation with the real estate finance. The saving balance of residents in city and country is going up speedly and up to 16.6 trillion which needs to find another suitable investment path. But financing is restricted to the investors'requirement in China, so real estate investment trust (REITs) which is combined by the real estate and financial innovation is becoming a resolution tool for this problem. REITs is a good tool for investment and finance for more than 40 years in the USA and formed a mature operating mode. However, it can't be rote due to different situation, so a further study for its mode in our country should be carried out.This paper includes 7 parts. Firstly, it introduces the content of REITs. Secondly, in the way of analyzing the actuality of the real estate and financial market,with literature interview and investigation,it analyzes pressures under the magnificent control. Then, in the 4th chapter it summarizes the characteristic, actuality and shortage to forecast the trend by case studies material analyses. ulteriorly, it discusses the possibility of the development of REITs in China. In the end, in chapter 5 and chapter 6 it brings forward the models of REITs and also the obstacles and measures have to be taken.