Research On The Application Of Real Estate Investment Trusts(REITs) In China

Real estate industry is always one of the most critical support industries in our country.Real estate industry has grown rapidly in recent years.Our government made a lot of regulations and policies against the increasing in real estate market in order to avoid the appearance of property bubble.As we all know,real estate enterprise's development needs the fund's support.However,the promulgation of these regulations and policies can have negative effects on enterprise's financing.As an innovative financing way,REITs can relieve enterprise financing problem and change such single financing way.Based on “CITICS Qihang Specific Asset Management Plan”,this thesis intends to investigate into the advantages and disadvantages of RIETsand the limiting conditions that handicap the development of REITs.In light of these problems,the corresponding countermeasures and suggestions are given.Firstly,the paper introduce REITsfrom two aspects,including company profile,the structure of deal,basic assets,cash flow,mobility.Then,the paper analyzes deeply the capital cost,capital structure,maturity structureand financing risk of this plan.By the analysis of the results,as an innovative financing way,REITs can relieveeffectively enterprise financing problem.Compared with other financing means,the cost and difficulty of financing is relatively low,which is conductive to enrich our country financing tools and financing channels.In the meantime,it is helpful for companies to improve capital structure and activate assets storage and enhance the liquidity of assets.However,there are still many obstacles in the process of the development of REITs,such as,imperfect law systems and tax system,high threshold.Thus,we must further improvelaws and regulations,lead the real estate industry health development and establish the reasonable tax system to push the development of REITs.