Real Estate Investment Trusts (REITs): Theoretical Analysis And China's Pratice

The vigorous development of Real Estate Investment Trusts (REITs) across the world represents the trends of the realty business which has attacted people's widespread attention. This dissertation will employ the theoretical framework of New Institutional Economics to analyze the REITs institutions, examine the current situation of REITs development and describe the significance and role of the development of REITs in China's realty business. It also provides the development envision and suggestions for Chinese REITs.In addition to the preface, there are six chapters that can be divided into two parts in this dissertation. The first part is the theoretical analysis of REITs, including chapter1, 2, 3 and 4. Chapter 1 introduces the basis theory. It points out that REITs, in essence, are"aggregative investment institutions"and puts forward an analytical framework, i.e., the theory of New Institutional Economics which consists of institution theory, principal-agent theory and contract theory. Chapter 2 comprehensively reviews institutions of REITs. It conducts the economics analysis of the origin, composition and changes of the REITs law systems, and describes the contents, change process and change regularity of REITs legal systems, so as to provide historical experience and reference to Chinese REITs(C-REITs). Chapter 3 gives the theoretical analysis of organization institutions and governance mechanisms of the REITs. First, it conducts in-depth analysis of the two institutional arrangements of REITs organization: trust REITs and corporate REITs. It reveals the legal and economics relation among parties of the REITs organization, pointing out the principal-agent problems therein and discussing the governance mechanisms of REITs organization under principal-agent theory. Chapter 4 gives the theoretical analysis of the institutional arrangements of investment, project management control of REITs. It first discusses the contractual and social nature of investment institutions of REITs, then introduces and analyzes the styles andobjectives of REITs investment Based on this analysis. It also gives detailed analysis of the special investment institutions and research on the mechanisms of project management control for REITs organization.Part two includes chapter 5 and chapter 6 which show the practice and explorations of REITs in China. Based on the theoretical analysis in part one, chapter 5 conducts the analysis of development environment and tick-tock of Chinese Real Estate Investment Trust (C-REITs). It points out two ways of C-REITs development, makes in-depth study of the development situation, patterns and legal system of C-REITs. It also proposes the construction of C-REITs institutions. Chapter 6 is the extension part from system building to real operation. It integrates the REITs and the development of China's real estate indrustry. It expounds the interaction between REITs and the development of China's real estate enterprise, the innovation of China's real estate investment and financing systems, and the upgrade of China's Real Estate Industry. It points out the new development trends of China's real estate industry with the application of REITs.There are three innovations in this dissertation:1. Apply the theory of New Institutional Economics to analyze the REITs. Overcome the theory lack in current REITs study in China.2. Point out and analyze two trails of the C-REITs legislation.3. Combine the current situation to describe the relation between REITs and real estate development in China. Point out the new trends of China's real estate industry with the application of REITs.