Study On The Reits Model From Market-Oriented Development Of Public Housing

In2010,the central government launched a large-scale pulice housing projects which is mainly public rental housing in order to meet the housing demends of urban poor families.However.the existing public housing is mainly constructed by government in a administration way,rather than constructed by market in a marketization way.Therefore.the government is difficult to bear the funding pressure of large-scale construction of public housing.In October2009,the People’s Bank of China launched the 《the real estate trust beneficiary securities issued management measures in the inter-bank market》 exposure draft,to discuss the probability of solving the financing problems of the real estate companies with REITs(Real Estate Investment Trust,REITs).And than.the State Council called for REITs pilot being read in conjunction with public housing financing demends clearly.But the REITs pilot has no progress so far.one of the main reasons is that the central bank’s exposure draft is far from the actual situation of China’s real estate market and is difficult to match with the construction financing model of piblic housing.So that.this exposure draft is almost impossible to operate.Based on the analysis of the existing real estate market financing model,this paper study the problems of the funds supply.the subject of investment,market transactions,tax and investor returns in the REITs exposure draft on the perspective of market-oriented development of public housing.And this paper make a systematic analysis with the REITs exposure draft of the People’s Bank of China launching,and discusses how to build the REITs mode to meet the financing needs of the main market participants.Through the analysis,This paper reaches the conclusion that REITs exposure draft needs to modify in many aspects:In the setting up of REITs,this paper suggests that the government should set up an equity public housing REITs and choose to offer in the securities market.In the investors and assets of REITs,this paper suggests that REITs should allow public housing in development phase to become REITs assets,and encourage institutional investors to participate in securities market actively.ln the taxation of REITs, this paper suggests that the government should give pubilc housing REITs to conditional tax breaks.Moreover,the government should strengthen the legislative work of the REITs,such as launch a special regulations of REITs.On the basis of the above analysis,this paper proposes some specific policy proposals,and gives a REITs mode which adapts to the financing needs of public housing.At the same time,this paper makes an empirical analysis of using the date of Hong Kong REITs to prove that equity REITs in securities market can meet investor demand and it is feasible to raise funds for public housing construction from the stock market.