Study Of The Development Of China's Real Estate Financing And Real Estate Investment Trusts Reits

Real estate industry contributed heavily to China's fast boom. However, China's bank boasts potential risks as a result of the dependence upon bank's loans from real estate corporations. As a new financing tools that securitizing assets, REITs could optimize the financing knot in real estate industry and lower bank's risks. Accordingly, general people shall also benefit from it.Though REITs could be transferred in the international market through IPOs and other means, it is still immature in the domestic market.The common methods that REITs entered Asian market is that: investors purchased China assets at lower prices and sell it out in international market after prompting the rate of return. This circulating practice drew attention when it appeared early this year.We have to ascertain the nature of REITs before we determine the way that treat REITs. Questions such as "Why REITs choose China" , "The Impact of REITs upon China" , "Will China establish own REITs" , "When and how to establish REITs in China" , etc. require our analysis and taking suitable measures.