Study On The Legal Issues Of China's Real Estate Investment Trust

The U.S. Congress created the legislative framework for REITs in 1960 to enable the investing public to benefit from investments in large-scale real estate enterprises. At the same time, REITs flourished the real estate markets and real estate financial markets. Since 1990, Asian countries such as Japan, Singapore, South Korea and China's Hong Kong have introduced REITs. On December 3,2008, the State Council promulgated "Circular on further strengthening the macro management of the securities market." It was the first time for the State Council to consider REITs as a financial channel for real estate enterprises. Later on, the State Council promulgated "Several Opinions of the General Office of the State Council on Providing Financing Support for Economic Development." It emphasized the experimental work of REITs would be carried out. The two legal papers provide support for introducing REITs. Now, China's Central Bank, Securities and Futures Commission, China Banking Regulatory Commission and other financial institutions, are actively preparing for the experimental work of REITs. Firstly, this article has done an overview of REITs and compared the development courses and the legal frameworks among the U.S., Singapore and Hong Kong. Based on the introduction, we can trace the development courses of REITs, which provide guides for us. Then, this article set out the choice of models of REITs under the current legal environment for the implementation of REITs and how to perfect the related legal system. In addition, this article has focused on how to effectively control the risks of REITs.