Development Of Our Country's Public Offering Type Real Estate Investment Trust Fund Law Research

With the acceleration of the urbanization process in China, the real estate industry has got up to a high-speed development period. As a capital-intensive industry, the real estate industry has been facing a shortage of funds, the financing of over-reliance on the banking system,which was not easily conducted by the country’s macro-control policy. At the end of the20th century, many emerging countries and regions, such as Singapore, South Korea and Hong Kong, by learning the experience of developed countries, vigorously developed Real Estate Investment Trust (REITs) and successful accomplished innovation in the field of real estate finance. The implement of REITs can resolve these problems that we are now facing, improve the real estate investment and financing system, shun the risks of real estate finance, and promote the sound development of the real estate industry. Private REITs has played a little role in real estate financing.but due to the lack of current law and it’s own limitations, it has produced a lot of problems. Through the strengthening of relevant legislation.some issues can be met in this private model, the substantive issues (such as the scale of financing, beneficial interest, liquidity, etc.) must be resolved by the development of Public Offering REITs.Through analysising the main legal issues of our country’s privat REITs and comparison with foreign real estate investment trusts,the author want to illustrate the need for the development of China’s public offering real estate investment trusts. Based on this,the author proposed to build legal system framework for the public offering REITs of our country. In the organizational structure, we should continue to remain contract type. Because this model is widely used in China’s private equity real estate investment trusts and securities investment funds, so we have some experience. In order to reduce investment risk, we should choose Equity REITs, carefully use Mortgage REITs. Tax incentives and mandatory dividend can ensure the sound development of the public offering real estate investment trusts. In specific operation, we can learn the successful experience from american reits and the China Securities Investment Fund. In order to ensure the successful operation of the fund, information disclosure, governance structure and supervision must be strictly designed.The main part of this article is divided into four parts:The first part is to analysis the current law question of our country’s private REITs.The second part is to compare with foreign real estate investment trusts. The third part is to introduce the necessity of developing Public Offering REITs.The fourth part is to analysis building legal system framework for the public offering REITs of our country.