Study On Real Estate Investment Fund In China

Based on the global economic turmoil, China has no choice but to accelerate the pace of financial reformation and seek for the best real estate investment fund. This is also to comply with the needs of the national policies. However, the legal system in China still could not facilitate the establishment of real estate investment funds. In order to protect the best interest of investors, the related authorities shall set up an all-rounded mechanism to regulate such funds with reference to the experience of other nations or regions.This paper included the analysis of the real estate investment fund in terms of feasibility and practicability of statutory system. At this moment, although we have the base of establishing the real estate investment fund, a variety of factors in particular the legal system still restraining the development of such fund. In order to facilitate the pace of developing the real estate investment fund, the writer suggests basing on existing legal principles with the help of establishing new provisions to regulate the real estate investment fund's market. Meanwhile, this could also broaden the means of financing the fund, minimize the risks and meet the needs of the investors. As a result, this can ensure the steady and healthy development of the real estate investment fund in our country. Nevertheless, the writer also opinioned on the process of setting up, organize and distributing such funds. The writer based on institutional funds as a case study, analyze the rights and obligations of potential investors, fund manager as a trustee and fund initiator.Having said that, the real estate investment fund in China is still in her infancy, a number of concerns is still debatable. The establishment of real estate investment fund needs the proactive participation from different sectors especially legal professionals in order to facilitate the pace of such development.