The Investor Legal Protection In Real Estate Investment Trusts

Real Estate industry is one of the important pillars of Chinese national economy,it is a very typical capital-intensive industry,and it has the characteristics of large scale of capital use and long period of capital occupation.REITs as an innovative Real Estate financial instrument,is considered to be the representative of the most advanced productivity in the Real Estate industry.Although REITs started late in China,REITs still have broad prospects with the continuous exploration and development over the years.From 2014,the first type REITs “CITIC Special Asset Management Plan” was listed,which proved the first practice in China.In the intensive sale of long-term rental apartments in 2017,such as China Poly Group Corporation,Country Garden and so on,and the public offering of REITs are also coming.In recent years,the voice of promoting public offering REITs has attracted much attention.Public offering of REITs will reduce the threshold constraints for small and medium-sized investors,and it will help them to select the best REITs investment,so that they can get the stable income and asset appreciation.They all prove it is imperative to develop REITs in China.Therefore,it is essential to protect the rights of investors in order to ensure the healthy and sustainable development of REITs.REITs are quite mature in legislation and practice in the United States which are originated there.And it has developed into the most important investment Real Estate method in the United States.It finances the Real Estate industry and plays an important role in commercial Real Estate investment,becoming a public investment method.Therefore,the success of American REITs can become a reference for China to build a legal system for REITs and protect investors' rights.This paper attempts to analysis the existing problems and legal environment of Chinese REITs by comparing the American REITs investor protection experience and try to build a legal mechanism for the protection of investors' right in China.The first chapter mainly summarizes the basic theories of REITs,from the concept and operation mode of REITs,the investment advantages of REITs and the development significance of REITs in China,to make a comprehensive understanding of REITs and the current application in our country.The second chapter breaks through the new risks of investors by public offering REITs to raise the market risks,policy risks and the risk of its own particularity in current situation.Then through the analysis of the current legal norms and shortcomings of Chinese REITs to raise the new questions: There is still a lack of improvement in the protection of investors' rights,which requires the legislature to continuously enrich the relevant legal norms.The third chapter is the reference of American REITs to the legal protection of investor rights,which is the key content of the essay.It summarizes the American REITs prudent investor system,the legal system in the investor's tax incentives,the innovative management model of REITs,the investor's liquidity ability,and investor protection in the private placement,which can be used as reference for the protection of Chinese REITs investors' rights.The fourth chapter mainly puts forward the regulatory path of Chinese REITs investors' rights protection.The author proposes perfect suggestions by regulating therelevant obligations of REITs managers and trustees,improving their entry barriers,constructing a strict information disclosure system and taxation legal system,and put forward to improve the system of investor access.