Study On Risk Management Of Real Estate Trust

From2003to2005, the real estate trust in our country was in the exploratory stage. From2005to2007, it entered into the preliminary development period. When the real estate business fell on difficult times because of the financial problems, the real estate trust was experienced a great development and began to present a good state. From2009, the real estate trust entered into a rapid development period and the scale of the trust products peaked in2011. During those period, the Chinese real estate trust has gone through a winded historic development. Under the strict adjusting control of real estate, the average home prices and turnover fell and the real estate business capital chain is day-by-day tight, so now the real estate trust is facing the cash risk. At the same time, it has provoked the huge concern of supervision and restricts on the real estate trust. With several policies coming out, the real estate trust was affected.In2012and2013, the total repayments are RMB250billion and RMB310billion, plus extra pay interest. Although the repayment problems cost the trust company a lot of energy, this is not the only risk of real estate trust. There is a lot of risk behind the project, such as due diligence process, trading structure and the supervision of the trust company. The real estate trust is one of the most important part in trust business so that study on real estate trust risk management is very necessary.Firstly, the author introduces related concept of trust, analyses the types and characteristics of real estate trust, and also give an acute analysis on the development of the real estate trust in foreign countries and the present situation and characteristics in China. Secondly, based on the study on the risk of the real estate trust, the author classifies the risk into investment risk and operation risk. Lastly, some ways, such as national policies and systems risk control measure to solve these problems are put forward.One significant feature of this article is to introduce the product design of real estate trust and a business innovation in great detail. At the same time, based on the cases of risk management in the real estate trust, the author makes analysis and propose improving measures.