Study On The Operation Model Of Real Estate Investment Trusts In China

Real Estate Industrial is one of the vital industries in our national economy. Inrecent years, with the development of citilization and industrialization, demand of theproperty is increasing, and the profit in real estate is higher than that of others.However, at present, the capital for real estate development, with the influence of thegovernment macroeconomic policies, is very shortage. In order to seeking new fundchannels, many property companies begin to pay attention to capital market abroad.In July, 2005, Yuexiu Real Estate Company was listed successful via REITs inHongKong, then REITs become a focus topic in real estate circle in China.Real Estate Investment Trusts is an investment approach characterized bycollecting numerous investors funds, which are operated by professional managementcompany and eventually invested in real estate business. Currently in China, due tothe ample capital source of bank, additionally with the lacking of the development inthe capital market, the existence of the Real Estate Investment Trusts has never beenrequested and substantially discussed. While with the intensifying of the nationalmacroeconomic regulation and requirement of the real estate market's development,the necessity of the establishment of Real Estate Investment Trusts has graduallycome into view.But as far as the domestic of the REITs, everything just begins and mostresearchers just stay in the stage of introducing the foreign experience and did notsuggest enough advice for the practice of REITs in the developing country as china.Therefore, this paper gives a deep insight into the mature patterns of REITs in foreigncountries and the latest experiments of domestic trust industry in developing REITs, italso analyzes the organization forms, investment styles and issue models ,and drawthe following conclusion: REITs in china should adopt contract entity pattern;thereexist unsolvable problems with the trust mode;and fund model is the future trend forREITs in China. Based on the current financial market and law environment and enactthe specific laws, this paper then presents the functions of Semi-opened REITs indetail, and finally gives further analysis on the policy aspects.