The Legal Analysis Of Real Estate Investment Trusts

As an important component of economic growth, China's current real estate industry has becomed an important industry leaving the impact on the macro and micro economy for the reason that it influences peope to live and work.But the over-reliance on the real estate developmental funds of the bank loans has become an obstacle that hinders the healthy and rapid development of real estate and the implementation of macro-control measures taked by China in recent years is to fall the real estate industry into a trouble, meanwhile, the Chinese people have not achieve their goals for poor access to invested demand though they have more money to invest. As a new investment tool coming from the the rapid development and success of foreign real estate investment trust (Real Estate Investment Trusts, referred as REITs), gradually attracts real estate Enterprises and the majority of investors for its advantage of less investment higher earnings,better liquidity and so on. REITs can not only contribute to achieve win-win between the real estate and trust business of cooperation, help accelerate the formation of real estate capital markets, but also help reduce systemic risk for banks across the country. So this study has great practical significance for those reasons.I will analyze the basic theory of REITs, its establishment, operation and risk prevention mechanisms through comparative analysis and theoretical analysis in this paper. I want to explore the construction of a program suitable for China from the comparative analysis of REITs in other countries and regions as a reference.The text is divided into three chapters.The first chapter:"The summary on Real Estate Investment Trusts (REITs)". This chapter primarily introduces the basic theories related to REITs and attempts to analyze those problems as follows:First the definition of real estate investment trusts.Then according to different classification methods, how many types can REITs be divided into. Moreover, the value of its system revealed by REITs features.Last but not the least, the analysis of REITs in the legal relationship of trust.The second chapter:"The comparative investigation on the establishment and operation of national real estate investment trust". This chapter paves the way for REITs to the next chapter through the investigation on the status, the establishment, operation mechanism of REITs from the United States and some Asian countries and regions.The third chapter:" The optimal routing selection for Chinese prosperousness though the investigation on the development of real estate investment trust". This chapter evaluates the REITs of the People's Bank of China and the CSRC through the analysis of the necessity and feasibility of the development of REITs, so I think the former is more suitable for China. In the end,I will discuss the risk in the process of the the development of REITs and offer my proposals arming at how to prevent the risk of REITs.