A Study On The Development Of Real Estate Investment Trusts In China

As a major pillar industry of gross domestic economic development of China, real estate industry plays extremely important role. Real estate investment trusts(REITs),one of the complex financial instruments,is generally recognized as an effective vehicle in the investment and financing of the real estate market by international community. However,with the tight macro regulation and control by the central government, as well as the natural evolution of the capital market and the real estate market, it is absolutely necessary and urgent to develop the REITs in China.This article employs the methodology of comparative analysis and case study. First of all, it provides discussion of the definition of REITs, its characters, categories. It conducts comparative study of REITs of major foreign countries. Secondly, the article analyzes the current situation of financing of the real estate companies in China, points out the existing challenges and problems, presents the meanings of the development on the REITs in China. Thirdly, this article studies the current situation of REITs in China, does some case study of REITs business plans and selects the preferable organization structure of REITs in China. Finally, based on the analysis in the first part of the article, it provides the pertinent advice and strategy to address the existing challenges of REITs in China, including the improvement of the policy making and legal environment of REITs, innovation of REITs products, learning from the successful experience of foreign REITs models and the Human resource development strategy of REITs professionals,etc.