Research On REITs Model Used On Public Housing Financing System

With the development of China’s urbanization and economic reform,more andmore people move to city and related industries get together what lead to more housedemand and house supply shortage.Public rental house is an important way to solvethese problems.As the scale of construction and management growing,the governmentrelying on government finance and bank loans can not afford the funds pressure.Facingthe big funds gap,the way to solve financing problem and how to build a sustainablefinancing system are hot research topics in the world.As a big financial innovation, REITs have developed for half a century in abroad. Itis a good way to solve the disadvantages of real property about big fund demand, poorasset liquidity, capital turnover slowly and so on. China has a lot attempt to developREITs and Similar REITs business has a big asset management scale. Now China has amature economic condition to develop REITs.This paper based on China’s public rental house construction financing problem,and analysis China public rental house financing status. Introducing some developedcountries and region’s public house financing mode,and learning from their successfulexperience, The paper analysis China public rental house financing mode and design afeasible mode based on Chinese national conditions.First, The paper introduces the situation of Chinese public rental houseconstruction and problems, Listing the main financing means of Chinese public rentalhouse and analysis the existing problems of these financing means. Based on theanalysis of developed countries public house financing mode and Chinese nationalconditions, The author put forward the way to solve Chinese public rental housefinancing problems. Secondly, Give a brief introduction to the concept, characteristics,classification of REITs. Introducing the development of REITs abroad and analysissome developed countries and regions’ experience of developing REITs. Based oncomparing the similar financing means with REITs and Chinese national conditions,Analysis the reason why Chinese public rental house financing system select REITsmode. Thirdly, Combining the situation of Chinese real estate market and the policyenvironment and economic environment of Chinese REITs development, Analysis thenecessity and feasibility of Chinese public rental house financing system developingREITs. Lastly, Based on the developed countries and regions’ successful experience and the operation details of Link REITs in Hongkong, On the basis of Chinese nationalsituation, Designing the REITs mode of Chinese public rental house financing system.Analysis the possible obstacles in developing the designed REITs mode, andintroducing its future development.