The REITs' Applied Research In China's Real Estate Financing

Real estate investment trusts(REITs)refer to the issuance of stocks or unit beneficiary vouchers to raise funds from public investors,which are invested and operated by professional investment institutions and allocate most of the investment income to investors.the development of REITs in developed countries,especially in the United States,the European market have made considerable progress and boomed the local economy.In China,the real estate business is generally faced with narrow financing channels,high financing costs,real estate financial products and other issues,how to change the vision of estate financial from the development to the later management and how to finance through the latter part of the financing is particularly important to China's real estate finance Of the healthy development.In view of this,the central bank,the Commission issued a number of documents which required to promote the development and implementation of REITs in China actively and steadily.On May 13,2014,the CSRC issued the Opinions on Further Promoting the Innovation and Development of Securities Business Institutions,which clearly stated that it would construct the REITs products in China,at the same time the SFC approved the CITIC sailing special asset management plan at the Shenzhen Stock Exchange Listed.Therefore,from the background of China's real estate development and policy guidance,REITs face a rare opportunity for development.The application of REITs in the real estate finance are benefit to our economic,on the one hand it can help the real estate business to find new,more costly financing channels to solve its finance problem;the other hand,it can help to provide investors with new investment products,so as to better share the benefits of real estate appreciation.This article will introduce the REITs' current application in China through the case study of the "East Capital Management-Qingpu wuyue Plaza Asset Support Special Plan”,including the product overview,product design,the main risk and the slow release measures,in order to find the current problems of this financing tool and provide a reference for REITs in China's further development and popularization.