Research On Real Estate Investment Trust In China

Real Estate is one of national essential industries. It Plays an important role in the development and promotion of national economy. However, Chinese financial market for real estate is not mature enough to support its healthy and long-term development. In fact, bank loan turns to be the exclusive channel to finance real estate projects, which leads to a dangerous situation that the risk of real estate may transfer to commercial banks. Therefore, we explore various solutions to the problem.Real estate investment trust (REITs, the same below) is a typical form of real estate securitization, real estate industry and financial markets to the mature stage of the development of modern financial product innovation. REITs have enabled the high-yield real estate investments not only retain the character and enhance the real estate investment assets mobility and the stability of earnings, thereby to national real estate market and the capital market has played a dual role in promoting development. At Present, China's rapid economic development in the period, on the one hand, the thriving real estate market growing demand of innovative financing, on the other hand, investors in innovative financial products and widen the investment channels urgent needs, both in China's real estate demand-driven financial innovation.REITs as a real estate market in the world a more mature development of the financial innovations, Chinese theorists have drawn positive attention and business. Research and development experience and lessons form abroad REITs explore REITs in our development model, analyses the development of national REITs external environmental factors and legal norms, Combined with the reality of our country, to present a summary of the reality of our development REITs model design for the current conditions of China REITs legal norms in regulating and promoting the healthy and stable development of REITs.Starting form this idea,this paper used a relatively qualitative research and analysis, and case study research methods to systematically study REITs, discussed the meaning of REITs, classification and characteristics, and impacted on the Chinese real estate market and the capital market. After comprehensively comparing the main foreign countries and regions and the status quo of Chinese REITs development, the paper offers some constructive views and policy recommendations for Chinese REITs model establishment and then sets up a relatively complete frame to research Chinese REITs model.