Study On Singapore Real Estate Investment Trusts (S-REITs)

Since from 2001, under the conditions of the globalization and the quick development of the Chinese economy, there appears to be a quickly-development tendency in the Chinese real estate industry. Meanwhile, many people always complain that the price of housing grows so quickly. In order to restrain the expansion of real estate foam, and melt the finance risk, the government begins to restrict loans that will privde to real estate. Such measure will compel land agents to find some new financing channel. Furthermore, the amount of resident save continuously grows, and also locates a high level in a long time. It means that the capital market needs many investment channels, especially those which have low risks. Because of the reasons above and its higher and steadier revenue, as a tool of financing channel of real estate, REITs arouse many attentions widely in inland.We can comprehend the REITs as a kind of trust, by which many investors'money, which will be left unusedly during one period, is gathered to set up an organization, and what the main work of this organization is to investing money on the real estate market. By managing these assets, and at the end of the investment, as the return of the money, the investors share the return of the investments from the real estate assets.The first Singapore REITs was launched and listed on the Singapore Exchange (SGX) in July 2002. Since then, there were sixteen REITs listed on SGX with an aggregate market capitalisation of more than S$26 billion in 2007. Penman of this thesis hope that it can provide many uses for our country referenc via studying the Singapore REITs. This thesis mainly includes four chapters. In the first chapter, the author introduces the background and meaning of this article, and introdeces the present situation. In the second chapter, by discussing the relative knowledge of REITs, such as definition, categories and functions etc, the author wants to make sure that readers have a good understanding. Chapter 3 is the most important. Through introducing the developing state of Singapore REITs, including course of developing, setting principle, framework and so on, the author makes sure that reader have a completely and systematicly understanding of S-REITs.Finally, the author focuses on the necessity and feasibility of developing REITs in China, and explains some problems that should be paid attention to combining with developing experences of S-REITs.