Real Estate Investment Trust Research

After 1999, as mainstay industry and growth engine of national economy, real estate industry has contributed a lot to keeping increasing rapidly of Chinese economy. Real estate industry is one of the typical capital denseness industries. But the character of Chinese real estate is that small enterprises, dispersive resources and low use efficiency of social resources, which is out of accord with capital denseness industries character. There is very close relationship between real estate industry and finance industry, but Chinese real estate industry has not obtained enough sustain provided by finance industry. What's more, after People's Bank of China issued a series of polices of to prevent real estate development in excess, the traditional financing channels of Chinese real estate enterprises have been blocked. Accordingly, pushing real estate securitization is one way to accelerate Chinese real estate development, and Real Estate Investment Trusts (REIT or REITs) one mode of real estate securitization. Firstly, the development situation of Chinese real estate and finance industry are analyzed. According to the investigation and statistics of real estate investment in recent years, the author analyzed and calculated the supply and demand situation of real estate development in future, which indicated that there is great dispersion between the supply and demand. Then according to the development of American REIT, the development situation, types and operation system of REIT are introduced. Base on the preceding chapters, the author analyzed the necessity and feasibility of establishing REIT in China. In the fifth chapter, the operation mode of Chinese REIT was analyzed with accordance of Chinese situation. Finally, the author analyzed the restrictive factors of REIT establishment in China, and gave some suggestions to push the development of REIT.