Real Estate Investment Trust In Our Development

China real estate industry, one of the major national economic sectors, whether it blooms or recedes, can exert a great influence on the economic growth and social development of the country. Chinese government has strengthened and implemented regulations on the real estate industry, which means the end of unreasonable lucrative business and the beginning of profit competition. Our real estate industry will move into a new phase of regulated, professional and reasonable expansion. Real Estate Investment Trust (REIT) is dividend-paying funds, which invest in real estate buy and sell, development and management. This financial product was launched by Union Trust (USA), aiming to enable individual investors to participate in large-scale, income-producing real estate investments by raising small amount money. REIT, as an effective investment method, could inject new vitality into the country's capital market and promote real estate industry development. Therefore, REIT will play critical role on China real estate industry and economic growth. Based on the analysis of REIT (USA), including its forming and development, policy merits and limits, and company operation system etc., this article will explore the necessity and possibility of introducing REIT in current China real estate market. Considering the characteristics of China financial environment, this article will also issue some suggestions. Finally, according to the introduction of Hong Kong Link REITs, a particular analysis of REITs operation and investment meaning will be given.