China Real Estate Investment Trusts Risk Management Study

In recent years, the country has reinforced the regulation and macro-control of the real estate industry. On the one hand, the real estate industry needs new financing channel badly, the real estate trust investment has become the focus what people pay attention to; On the other hand, the tremendous folk fund lacks the ways of the highly effective payment of the investment. As the solution of two big cruxes above metioned simultaneously, the real estate investment trust has become the inevitable trend of real estate industry and the capital market development . It can bring huge benefit to real estate business and investors , however, the risk which it contains should not be neglected. According to China Banking Regulatory Commission in 2008 announceed: The product of real estate trust has been the No.1 for continual 5 years in all trust product from the financing amount to the releasequantity .While the prosperity of the real estate trust investment can not avoid the risks it brings together. Looking back on the history , the trust industry got the lessons for five times, which warn us to keep away risks. It is still the important link in trust industry sustainable development.And the risk of real estate trust investment has the characteristics of complex, concealment and levity .To strengthen the control of real estate trust risk is more urgent and essential. The Jiangsu Trust Company can be the model in the real estate trust risk management from the strategy to the specific measures. To distinguish and diagnose correctly the risk of real estate trust has the great significance both in enhancing management skills and healthy development of the real estate in China. This article elaborates on present situation of real estate trust investment on the theory of the management of real estate trust investment; The paper also has carried on the analysis and diagnosis of real estate trust investment at present. Furthermore, the writer put forward the corresponding stratedy of control of the real estate investment. Finally, carrying on a more thorough discussion and the research on the basis of Jiangsu Trust Company as the illustrative case to illustrate the trust risk.