Research On The Operating Mode Of The REITs

The real estate industry has entered into the real estate capital period in recent years. The real estate industry is a capital intensive industry that needs to meet the growing demand for funds through capital operation, but the real estate securitization as a new financial tool has opened up new financing channels for the real estate industry. REITs can not only solve the real estate industry’s demand for capital, as a high return, liquidity new investment product also solve the demand of the investors. REITs accelerates the formation and development of the real estate capital market through combination of the real estate market and the stock market in china.REITs was born in America. Asian countries and regions have launched their own REITs products now. REITs as a mature investment fund is a kind of securitization of financial products essentially. Fund company or other sponsors absorb social funds from investors through issuing shares or beneficiary certificates, and hires professional investment institutions. REITs shares or beneficiary certificates can be traded on the stock exchange. International REITs market has matured, and we can learn the successful experience from mature REITs markets. On the basis of current real estate market environment and legal environment, we will introduce REITs products that accordance with our country’s condition. It has big implications for China’s real estate industry and the healthy development of the securities market.REITs is the focus of discussion on China’s real estate financial innovation. The real estate industry and financial industry are actively promoting China’s introduction of REITs. Based on existing conditions, the development mode of China’s REITs is discussed through comparative analysis In this paper. It puts forward suggestions of construction, legal system of China’s REITs property right system, risk control and supervision system.