Real Estate Investment Trust Fund (REIT) In China

Real estate has been turning into one of the new growth engines of our national economy. Real estate industry in China has the characteristics which do not meet the capital-intensice industry, just as small scale corporations, scattered resources, low efficiency in the use of social resources and so on. Real estate and financial services industries have a very close relationship,but Chinese real estate development is lack of financial support. Especially when the People's Bank of China have put forward a series of financial policies to prevent the overheating of real estate development, the domestic real estate enterprises'traditional bank financing channels have been hampered, and the grim situation forced the real estate enterprises to seek new means of financing.With the booming of financial and real estate industry in recent years, and the coming of WTO, we should face to the more intensely competition to the multinational real estate corporations.And the innovations in real estate financial instruments and the news types of real estate financial capital markets would be the sharpest weapons in the competition. The Real Estate Investment Fund is the necessary outcome of the certain developing stage in the real estate industry.This paper focuses on the development of REIT in China, and then explores the REIT theory and practice in the viewpoint of the development of real estate. First this paper introduces the concept of REIT and its development abroad. And then it carries on detailed analysis and elaboration on the establishment, management, the risk of REIT, which can provide the important practice instruction to the development of REIT in our country. Besides this paper also introduces two typical REIT case, on the basis of describing the funds in detail, it compares the the REIT production differences in China and America. At last, associating the whole analysis, the author sums up the difficulties in developing REIT in China, including small choices for organization models, narrow investment channels and so on, and brings forward strategic recommendations for China's development of REIT.