Study On The Mode Of REITs Based On Chinese National Condition And Its Risk Management

As mainstay industry and growth engine of national economy, real estate industry has contributed a lot to keeping increasing rapidly of Chinese economy. Real estate industry is one of the typical capital denseness industries. But the character of Chinese real estate is that small enterprises, dispersive resources and low use efficiency of social resources, which is out of accord with capital denseness industries character. There is very close relationship between real estate industry and finance industry, but Chinese real estate industry has not obtained enough sustain provided by finance industry. What's more, after People's Bank of China issued a series of polices of to prevent real estate development in excess, the traditional financing channels of Chinese real estate enterprises have been blocked. Chinese real estate industry has been in trouble with financing; Risks of real estate step by step will focus on the banking system; the huge civilian capital contained in the nation is short of high performance investment channel. As an efficient way which can solve three problems, REITs'raising will be the inevitable trend of the development of domestic real estate industry and capital market.In China, various financing measures, such as bank loan, IPO and real estate trusts show different drawbacks. In contrast, necessary conditions for the development of REITs in China have been satisfied. Many experts and scholars on the establishment of REITs in China to carry out a large number of research and demonstration, for the establishment of REITs in China, the specific patterns and the risk of preventive measures are simply the mode of foreign REITs and risk mechanisms, and its research is available sufficient breadth, but little on the more suitable for China's national conditions REITs-depth and systematic analysis of the patterns and risk prevention mechanism. Therefore, this article is to draw the United States and other mature capital market experience, fully integrated national conditions in China to explore the model of REITs in China. And in accordance with the current situation in China on REITs generated by systematic analysis of risks, And the establishment of a comprehensive risk prevention and control method.In this paper, the use of literature analysis, theoretical analysis, qualitative analysis methods, survey statistics, summary of theory with practice, as well as methods for analysis. This article first introduced the concept and characteristics of REITs; the combination of China's real estate financing environment, laws and regulations, the financial macro-control, as well as the development of China's securities market analysis of the feasibility and necessity of REITs; then deeply and systematically explores the model of REITs in China in the mature REITs from foreign experience, combined with China's national conditions, from two aspects of investment and operation to analysis the REITs risk. Then proposed that from the REITs investment, the operation and the exterior three aspects carries on the risk control the countermeasure measure which can make REITs on the development of China from some reference value.