Study On The Development Of Chinese Real Estate Investment Trust Funds (REITs)

With the development of the Chinese National Economy and the improvement of the People' s Living Standard, Chinese Real Estate Industry is showing a growing trend of rapid development, and has gradually become one of the leading industries of our country, which occupies a very important position in the national economy. Because of the Real Estate Industry' s own characteristics, such as large capital investment, long construction period, slow cash flow, and domestic real estate development financing channels for a single comparison, the banks have therefore undertaken the enormous risk. In order to prevent a possible real estate bubble, since 2005, regulatory authorities of our country issued a series for the real estate industry's macro-control measures, which lead to much more and more difficult for Real Estate corporate finance, and the capital channels are more and more narrow, thus the Real Estate Industry faces the risk of capital strand breaks. Drawing on international experience, the capital project operation of Real Estate Enterprise requires the combination of in real estate financial innovation and real estate portfolio of financial instruments in order to achieve the popularization of investment of real estate and the socialization of financing. To resolve the current real estate financing channels for a single, highly dependent on the situation of banks, we should vigorously develop the way of direct financing, so that the financial system for the safety of the development of the real estate industry is highly desirable. In recent years, how to promote Real Estate Investment Trust Funds (REITs) in the development of our country has become the consensus reached by the multi-party and explore the hot study spots.This article elaborated the Real Estate Trust Investment Fund concept, the type, the superiority characteristic, the risk and the operation way and so on basic principle, presents its development and its legislative overview in United States, Japan, Singapore and Hong Kong, and discusses from various factors for the necessity and feasibility of the foundation of REITs in our country, points out the current existence of legal obstacles and system deficiencies. At the same time, from Chinese actual situation and development experience from abroad, this article poses some policy suggestions on the development for the Chinese Real Estate Investment Trust Funds (REITs). Finally, this article looks ahead the future development prospects for Chinese Real Estate Investment Trust Funds (REITs), points out the extraordinary contributions of Real Estate Investment Trust Funds (REITs) for our country's real estate, financial services and even the entire national economy.