Study On Application Of Real Estate Investment Trust In China

The real estate commodity is both consumer goods and capital product. The characteristic of generating considerable cash earnings, makes the real estate not only an important field of social funds casting, but also the pillar of our national economy and growth point of economic development , playing an important role in the speedy development of national economy. As the most affected industry by government's macro-regulation, Chinese real estate industry urgently needs to solve the problem of single source of fundraising and financing difficulty by other financing channels besides bank loan. Real estate investment trust, as an advanced financing tool, becomes a new choice and a new trend to the property developers. REITs can not only collect large amount of funds lying idle in society investment and real estate business to meet the need of real estate enterprise's demand for fund, but also disperse the risk that real estate business depends on a bank excessively. Therefore, it is the best choice of financing channels in the development of Chinese real estate business at present.The real estate trust in China starts later and many laws & regulations and policies need to be improved, but in recent years, its proportion gradually increases in the national trust investment, and the amount of money increases as well. Strictly speaking, real estate in our country investment trust is not REITs in its real meaning, so it becomes the focal point in this paper of how to make REITs in our country perfect. Based on the experience of some developed country such as USA etc., this paper gives a general introduction and makes an all-round study of the REITs, analyzing the necessity and feasibility of developing REITs in China, summing up the practicable plan and frame to develop REITs concerning the actual investment trust condition in China. At last, the paper analyses the problems and risks the REITs in our country faced to and bring up the suggestions to solve the problems and evade risks, so that REITs can survive and develop preferably in China.