The Analysis Of The Real Estate Investment Trusts Financing Function

The real estate market is going through a difficult period of time,not just under government macro-control but also curbed by monetary tightening policy.In order to ease the situation and help real estate market to finance,Real Estate Investment Trusts (REITs) has been introduced.It helps the real estate market to optimise its capital structure and implement a strategic restructure.The author believes that REITs would benefit the real estate market and would become an indispensable financing tool of the real estate market in the future.In this article,using Yue Xiu REITs as case study,the author introduces its financing process and current financing situation.Through systematic analysis of its financing function,the author makes suggestions on how to successfully run REITs.It is stated that successfully operating REITs would lead to a more effective real estate market and a more stable development process,along with which,the whole economy would thus be healthier and stronger.Based on the theory of REITs Financing Function and the case study of Yue Xiu REITs,the author analyses its demands of financing through REITs as well as the results achieved.Problems existed in the financing process are discovered.After carefully study them,the author provides sensible solutions in the end of this article.This article is innovative and novel.First,the author uses Yue Xiu REITs,the first overseas REITs in mainland China,as case study,which is original and unique.Second, practical solutions are suggested with respect to the problems rose during Yue Xiu REITs' financing process.Third,paper research regarding to REITs are scarce in mainland China,most of which are mainly focus on REITs' operating environment and its business model.With a brand new perspective,the author conducted a thorough and systematic research on REITs' financing function,which as a result would enrich the study of REITs in mainland China.