Hong Kong Real Estate Investment Trusts (reits) System

Real Estate Investment Trust is an investment approach characterized by collecting numerous investors' funds, being operated by professional management companies and eventually investing in real estate industry. From the promulgation of the Code on Real Estate Investment Trusts of Hong Kong in 2003 to the listing of RREEF China Commercial Trust (RREEF) in 2007, the legislation and practices of Real Estate Investment Trusts of Hong Kong have been greatly developed.This paper elaborates on the legal system of Hong Kong Real Estate Investment Trusts and relevant theories and practices in the following four parts:Chapter One starts with the definition and concept of Real Estate Investment Trust, introduces the origin and development of it and analyzes its legal relationship and legally characteristic features.Chapter Two is based on the Code on Real Estate Investment Trusts of Hong Kong, expounding and analyzing the legislative process, major contains and practical effects of Real Estate Investment Trusts in Hong Kong to discuss the characteristic features of such in Hong Kong.Chapter Three compares the similarities and differences of regulations and practices of Real Estate Investment Trusts in the United States, European countries, Australia and other Asian countries and regions to get a global picture of Real Estate Investment Trusts..Chapter Four, from a Mainland China's point of view, discusses the relationship between Hong Kong Real Estate Investment Trusts and the real estate market of Mainland China, and the momentous significance to the establishment of Real Estate Investment Trusts system in Mainland China. Also, this Chapter proposes some suggestions to the PRC Tentative Procedures on Real Estate Trust Business of Trust and Investment Companies (draft for discussion).