Research On Protection Of Real Estate Trust’s Individual Investors

The real estate trust is important to the healthy development of the real estate market. On the one hand, social idle capital has been fully and effectively utilized; on the other hand, domestic individual investors will put money into real estate trust products instead of investing the real estate directly, which will reduce the potential demands for real estate market and make the prices of real estate return to the reasonable level. The existence of real estate trust has also brought benefits for real estate companies: they no longer need to rely too much on loan from banks and other financial institutions, and will not unduly influenced by government policies. And, the development of real estate companies will become more market-oriented. At the same time, the real estate trust also increases the financial choices of individual investors. Therefore, it is necessary to protect individual investors and enable them to enjoy the right of usufruct and the right to know.With the state regulation of the real estate, the bank loans become gradually tightening, so real estate enterprises turn to trust loans for help. However, the CBRC subsequently put forward certain standards and restrictions for the real estate trust loans. Under the above background, the real estate trust based on the income right of the assets has become favored by many real estate enterprises. This kind of the real estate trust will bring more risks to the individual investors, because there are not so much standards and restrictions, and it is often difficult to get help from financial asset management companies at the time of the occurrence of payment crisis. Based on the representative case “Anxin Trust Co., Ltd. V.S. Kunshan Pure High investment development Co., Ltd”, this paper will find out the problems existed in the protection of individual investors and put forward the improvement measures.This paper consists of five parts.The first part of this paper is the introduction, which includes five aspects: research value and significance, literature review, research methods, thesis structure, the main innovation and the deficiency.The first chapter mainly describes the case “Anxin Trust Co., Ltd. V.S. Kunshan Pure High investment development Co., Ltd”, including the establishment of the involved trust, the guarantee, the minimum cash balance, the performance of the involved trust, a series of contracts signed by both parties and other basic background; and the summarization of the litigation request, the controversy between the plaintiff and the defendant, the judgment made by the trial court and the court of second instance, the legal basis of the judgment; and a brief analysis of the negative effects on individual investors reflected by the case.The author further discusses in detail the reflection of the case “Anxin Trust Co., Ltd. V.S. Kunshan Pure High investment development Co., Ltd”. The case has mainly exposed four problems of the individual investors protection: 1,the contract of the involved trust has some negative agreements for individual investors protection; 2,during the establishment and existence of the involved trust, the information disclosure to the individual investors was lack of integrity and accuracy; 3, Anxin trust Co., Ltd has made use of “rigid payment” in disguise for its own profits, and the “rigid payment” has caused individual investors to mis-understand the real estate trust; 4,the judges haven’t made full use of Trust Law.The second chapter analyzes the necessity of individual investors’ protection. This chapter firstly analyzes the important meaning of the healthy development of the real estate trust for real estate companies and real estate market; and secondly expounds the relationship between the real estate trust and individual investors’ protection. Finally, the author clarifies that the problems reflected by the involved trust are prevalent in this kind of real estate trust.The third chapter puts forward the following three improvement ways of the individual investors protection: 1, straightening out the relationship between different subjects; 2, strengthening the responsibilities of the trustees; 3, improving the horizontal regulations.The last part of this paper is the conclusion.The first innovation of this paper is: the different views on rigid payment/guaranteed commitment.The second innovation of this paper is: for the lack of legal provisions, the author not only puts forward the methods to perfect the laws and regulations, and also puts forward some effective measures for transition in order to protect individual investors as early as possible.The inadequacy of this paper is that the author has not compared too much with the foreign laws; the author has just selected Japan’s relevant laws because Japan has gone through the situation which is similar to what we are faced with now.