Research On The Problems And Countermeasures Of REITs In China

Real Estate Invetment Trusts(REITs), a real estate investment trust focus on the real estate, has achieved rapid development in the international market since 1960. In the early 21 st century,China took in the concept of REITs, and started to explore developing mode of REITs。And now, China has formed many "C-REITs" with the theory of REITs. But compared with overseas mature REITs market, China has no special legislation for REITs,While the extensive business model in real estate market of China’s also hinder the development of REITs, making this innovative tool does not play its due role in China.The experience of developed countries shows that the real estate market will experience a change of which a incremental leading market to a stock leading market. The real estate enterprises has no choice but transformating and upgrading their ability of property management.Currently China’s economy is facing further downside risks, and the business model of build-sale is facing severe challenges, the demand of transformation and upgrading is imminent. Especially the domestic credit tightening policy after 2010, with bank loans as the main source of funding of the real estate industry is facing tremendous pressure in financing. How the financial institutions in risk control, provide, investment and financing services, is an important task of deepening financial reform. Especially after 2010, the domestic credit policy was tightening, bank loans as the main source of funds in the real estate industry is facing tremendous pressure. In the case,how to effectively control the risk of financial institutions and provide a matching financing services, is an important issue of financial deepening reform.This paper studies the problems and Countermeasures of the application of REITs in China in the background of the current domestic real estate industry restructuring and financial deepening reform. This paper has six parts. The first chapter is the introduction part, mainly describes the research background, content, significance, thought that in the current real estate market transformation and upgrading of the environment, the use of REITs innovative financing tools, can guide the development of the real estate market to a more standardized direction. After the introduction of research methods and ideas, according to the research focus REITs at home and abroad literature of different classification are reviewed. The second chapter starts from the theoretical study of REITs, described the concept of REITs, classification and unique characteristics, the relevant concepts such as asset securitization, real estate trusts were compared, and then summarizes and analyzes the characteristics of REITs concept, brief analysis the development process and the market size of the United States and other countries and regions. The third chapter REITs distribution model in the history, the development of REITs in China, the three aspects of the existing scale of analysis of China’s REITs into the country so far The development of the state, and summarizes the biggest problem existing in the application of REITs in China is not the function of financing potential effectively. The fourth chapter separately from the system level, the level of supply and demand, level of risk, regulators face in China REITS problems were analyzed. The fifth chapter selected China’s first case a single public REITs application- Peng Qianhai Vanke REITs, respectively, the operation mode of investment income, assets, and risk were analyzed. The sixth chapter based on the research, the author proposed that China should make the financial system, supervision system, comprehensive consideration of the legal system in three aspects, to provide for the development of our the REITs guide and regulate the system, promote the healthy and sustainable development road, norms, become the real effective financial instruments of investment in China’s real estate industry.