Legal Protection Of Invrstors By Trust Deed In Reits In China

Real Estate Investment Trusts(REITs)which originated in 1960 s,now has been adopted as a efficient investment tool by most countries around the world.As a new investment tool involving real estate,REITs plays a key role in improving capital market of real estate,not only by utilizing the properties but also by introducing a brand new way for the investors to share the interest of rapid development of real estate industry.Therefore,majority of the scholars in China do research on how to introduce REITs into China capital market,but few study the area of investor protection in REITs.The author is convinced that investor protection is one of the key factors for the success of REITs in China,because REITs is a new concept to Chinese investors and fund industry is not that standardized with weakness in financial supervision.We must strengthen the investor protection if we want to introduce REITs to China successfully,so that we can promote a smooth development of REITs and achieve our goals as sustainable development of real estate industry and benefits for the investors.This paper includes five chapters.The First chapter introduces the basic theories of REITs,including its definition,characteristics and classification.And the other part of it is the discussion of REITs' development path for China with consideration of reality.The author advises that REITs in China be adopted as the type that constituted by trust deed at the beginning.The second chapter focused on the necessity of investor protection in REITs.Combining the nature of REITs and the theories respectively in economy and law,the author analyze the risks in our market with discussion of weakness of current legislation about investment funds in China,in hope to find a breakthrough in building our protection mechanism for REITs.The third chapter talks about the how to improve the trustee's performance for their obligation by legislation.But we can only lay different emphasis of restriction on REITs manager and custodian,though they both function as trustee.For the REITs manager,we concentrate more on his fiduciary duty,but for the custodian,we care more about his obligation of supervision.The fourth chapter has a discussion on the external restriction during REITs operation.The author puts forward some suggestion that the more detailed disclosure for the information disclosure and more assistance from administrative department for lawsuit in investor protection will bring more restriction on the trustee from the external point and an enhanced protection for the investors.The last chapter is the conclusion of the paper,and it includes the brief review of former chapters and deepen reflection of them.