Study On Legal Obstacles Of Trust Company In Carrying Out Real Estate Investment Trust Business

Since its foundation in the United States in 1960, REIT has been extensively developing in the world and become a mature pattern of investment funds. REIT, different from general trust or the asset securitization, is of special legal properties. These properties make it meaningful of the real estate investment trust to promote national economic development, expand financing channels for the real estate enterprises and provide ideal profits for the financial market and financial products whose risks are between stocks and bonds. Therefore, Chinese government and financial practitioners hope that REITs could be officially introduced to China so as to bring vitality as well as innovation and development of financing industry, especially the trust sector and real estate business enterprise.However, in our country there is no formal real estate investment trust. The existing attempts seldom involve trust companies, which is really puzzled. The absence of trust companies in real estate investment trust is a product of complex factors, as policy, economy, law and other profound factors. The legal obstacles especially attract the attention of legal researches. This thesis is a try, attempt and reflection for this focus. Trust Law of PRC is the root law for China trust industry, the legal obstacles mainly refer to those of the Trust Law (in a generalized manner).This thesis is organized as:Part 1 is pandect, an overview of real estate investment trust. This part attempts to solve the problem of what is the real estate investment trust essentially and why it’s necessary to develop real estate investment trust and case study of the real estate investment trust, analyzing why there is no true estate investment trust in domestic China. Part 2 and part 3 made detailed analysis of legal obstacles and solutions facing the trust companies in carrying out the trueREIT business.