Study On Application Of Real Estate Investment Trusts In China

As mainstay industry and growth engine of national economy, real estate industry has contributed a lot to keep increasing rapidly of Chinese economy. Real estate industry is one of the typical capital denseness industries which are in great need of financing supporting.However, after people's bank of china issued a series of financing policies to prevent real estate development in excess, the traditional financing channels of Chinese real estate enterprises have been blocked. They have to find out new ways to cope with this situation.As a new financing tool, Real estate investment trusts (REITs) fully satisfied the financing requirements of real estate enterprises by collecting idle money and investing them into real estate industry. Based on the analyze of the linkreits in Hongkong, author laid emphases on the application of REITs in China under current law environment.In the first part of this paper, author made a brief introduction of REITs based on the American REITs. it's necessary to bring the REITs into China after the research of the It's feasibility. Then author analyze the case of the linkreits in detail. In addition to the real estate status quo, it's concluded that closed-end model REITs adapt to current development model. In the end, the paper discusses the limiting factors in the application of the REITs, such as institutional environment and professional personnel. According to these factors, author made some suggestions and measure to promote the development of REITs in China.