Model Of Commercial Real Estate Investment Trusts (reits)

The American subprime crisis which happened in April ot 2007 made the global financial sitation begin with rurbulence.With the extension of the increasingly global financial crisis, the world economy begin to slump. Each country decreased the economy growth forcast, and tried to boost the economy with all kinds of measure. Despite of the effort , every country are influenced with different extent of their economy development, among them is china without exception.Howerve , china is forturnately to be hurt slightly for the narrowed open of the financial system to the ourside of the country. But the real estate industry which contributes greatly to the country economy is heavily beat, and the retail industry which remained quite stable previously slided down oboviously, even the recovery of the residential part in 2009 can not pull the retail industry arise from the depression.Although the retail industry needs huge investment and long development term, which remains lower return back compared with the residential market, it still contributes stable cash flow and low risks, therefore appreciated by the financial market for its nice behavior.The development of the retail industry needs according financial environment to support, the attack of the crisis force great impact to the retail reat estate market and its developing room.How to boost the retail real estate industry after the financial crisis, there're much discussion, however none of them makes the right outway for the industry. Under the background , based on the current situation the retail real estate industy , the author tried to seek the right financial method by careful research of the development course and feature of china's retail real estate industry. This article combined the financial industry and retail real estate industry to seek some feasible and fitful models for the reference of the industry.The article analysises the current situation and mutual effect between retail real estate and china's economy, then by research of finalcial model of retail real estate, through research of matural realestate investment trusts of the foreign coutries , to find the suitable REITs model for china's retail real estate industy. By comparasion of the situation of china and developed countries , the article raised the advise of the China REITs model , and forward the suggestion for the further development of the china's retail real estate industry.By research, the article advise that both the government and retail real estate developer should stick to the holding and operation road, then search the suitable financial model, and china should develop the REITs with all efforts to make the health and sustainable situation the the industry. The government should try actively and make some breakthrough on policy. Finally the article raised the REITs models fit for the current situation.