The Study On Environment Of Real Estate Investment Trusts

Real estate industry is highly capital intensive, and it requires continuous financing, close tying with the financial industry. But for a long time, China's real estate financing channels is for a single, and bank loans is their main source of funds, so real estate finance market structure is imperfect, and the banks take a lot of financial risks. The experience of the developed countries and regions has shown that, real estate investment trusts (REITs) can not only effectively spread the financial risk, and it can further expand the sources of funding for the real estate industry providing new financing channels.In the legal environment, REITs invest in real estate as an industry fund, involving the "Securities Act", "Trust Law" and the tax and other laws, its development needs to cancel the existing barriers to the relevant laws of the relevant laws be amended and improved. In terms of its functionality from the market, REITs as real estate financing, real estate financing can solve the problem of relying solely on bank loans and reduce financial risks, from securities point of view, REITs as a low-risk investment products, enriched stock market, low-risk product varieties. Mode of operation can also view, REITs are essentially a collection of small investors, institutional investors and funds, and appointed by professionals with real estate investment and management focus and financial expertise, the choice of quality investment real estate projects financial instruments.This paper is divided into six chapters:Chapter I is an introduction, which describes the significance, background and research methods of the article, besides its basic framework. The last part of this chapter introduces the domestic, international literature and research results of this paper.Chapter II introduces the concept of REITs, its type and characteristics. The next section we Compared the concept of REITs, real estate trusts and real estate investment funds, who are Confused with each otherChapter III provides the information of REITs of the United States, Japan, and Hong Kong. Then we thoroughly study the history of REITs and the environment in these countries. The last section summarizes their successful experience.After introducing the legal environment, market environment and the operating mechanism of REITs in China, chapter IV, mainly analyzes of problems of the environment. The main problem of legal environment is that, industrial investment fund law and the 1 special laws of REITs have not issued. At the same time the trust law, securities law, corporate laws hinder the development of REITs, besides the double taxation of REITs. The main problems of market environment are made up of the drawback of the real estate market and stock market. In the operating mechanism, the problem is the lack of institutional investors and employees quality which is to be improved.In the above analysis bases, Chapter V makes suggestions about how to improve the legal environment, market environment and operational mechanism. The suggestions about legal environment of are that, issued the industrial investment funds and REITs special legal, and amend the relevant law provisions restricting the development of REITs, in addition modify tax legislation to avoid double taxation; the main proposal about market environment is to regulate the real estate market and to further develop real estate stock market, while establishing the secondary market of REITs increase the supervision of securities markets and establish the credit system; the improvement suggestion for operating mechanisms to cultivate institutional investors and professionals.Chapter VI is the conclusion of the paper, and China's environmental problems in REITs and related improvement measures are summarized. The next section of this chapter is about the innovation and flaw of this paper.