China's Real Estate Investment Trust And Legal Mechanisms For Research

The Real Estate Investment Trust (REITs) is a fiduciary system that issues beneficiary certificate to collect investors'capital and special institutional investors invest real estate and make proportional allocation. The nature of the Real Estate Investment Trust is trust. Specifically it's an investment fund. Its basic theory comes from the 19th Massachusetts Trust. The American Real Estate Investment Trust Act created the concept of Real Estate Investment Trust. The Real Estate Investment Trust has two typical forms, including the corporate type investment trust and the contract type investment trust. By comparison, we find that China selects the contract type investment trust.When comparing with the other investment tools, the Real Estate Investment Trust has the high-yield character, high liquidity, quicker mobility, and risk diversification, bankruptcy-remote and other advantages. This is the means of our research. We will use REITs to resolve the problems of the real estate industry including much investment, the slow capital flow, high risk, and other drawbacks. We will study how to use REITs to make more benefit in our legal system.The Real Estate Investment Trust has gone through wind and rain, and finally it has occupied an important position in America. Asian countries, Japan, Singapore, Hong Kong and Taiwan province, for example, have set up their own patterns. We can learn successful experience and failure lessons from the Real Estate Investment Trust. When bringing in Real Estate Investment Trust, we face a lot of barriers of investment environment and system. At the same time,there are birth defects and other negative factors of our existing real estate investment trust products. The barrier of investment environment is the disappearance of the business ethics. The barriers of legal system are as follows: defect of related regulations, lack of tax revenue preferential, the limit to public exchange and subject qualification admittance.We should stand on practice in search of our real estate investment trust model, and to rebuild and consummate our real estate investment trust law system. It will build up system to protect the conditions to establish REITs, consummate beneficiary meeting system to protect investors'legal rights, eliminate the irregularities of system to make the beneficiary certificate to exchange public. The basic character of the Real Estate Investment Trust is trust. The investor doesn't attach themselves to the management of the fund assets directly. But the fund managers operate and manage the fund assets. To protect the benefit of the investors, we have to pay much more attention to REITs.