The Research On Models That The Real Estate Enterpries In Zhejiang Develops REITs

Real estate industry is a pillar industry for China's national economy, its development relate to the people's livelihood. For a long time, China's real estate development is primarily dependent on bank loans, in the financing structure occupies approximately 70% of the share. This single-financing model brings risks and uncertainties for large real estate enterprises, such as the case of macro-control or economic recession is very likely to cause tension in enterprise funds, triggering the financial sector crisis.From the second half of 2008, the financial crisis began in the United States have a strong impact on China's real estate industry, banks are tightening and the combined effect of lack of Sales Outstanding, many real estate enterprises are facing the danger of capital strand breaks.On the one hand, China's real estate development patterns heavy rely on bank financing, on the other real estate companies must try to diversify financing channels, which makes real estate investment trusts (REITs) surface. REITs essentially a form of real estate securitization, which began in the United States, gradually matured in foreign countries after decades of development. For real estate companies in China, REITs is not only a new financing model, but also a kind of new development model.Real Estate Enterprises in China has begun to attempt to localize REITs and has accumulated some experience, but there are still many problems in the development of the scale and development patterns, This paper attempts to comb through the localization of REITs, take the real estate enterprises in Zhejiang for example, for the real estate companies to explore the development of REITs in general of a new road.This paper has an overview of the content of REITs and the development state of domestic REITs firstly. REITs have advantages of low investment threshold, high liquidity, and low risk and protect against inflation and so on, can be divided into mortgage-based REITs, equity REITs and hybrid-based REITs, including equity-based REITs is a major development direction. After the election of REITs in the United States countries, in the world through a large-scale development and now has more than 20 countries launched the country's REITs products, Japan, Hong Kong, Singapore, Taiwan and other countries and regions in Asia have begun to issue REITs Products.At present there are the models of the domestic real estate business development of China's REITs, overseas listing of domestic real estate enterprises REITs, overseas REITs invest in domestic REITs. However, it still faced with the problems, such as has not been established in line with China's actual conditions of real estate investment trust fund mode of operation, there is no established long-term profitability of the business model, risk control and imperfect legal system and many other issues. for the unique characteristics of real estate business in Zhejiang Province, This paper decided to take real estate business in Zhejiang Province for example for the research of real estate business development model of REITs.Secondly, the paper analysis real estate business development models of REITs. This article focuses on analysis three REITs model:the mode of trust scheme, the mode of closed-end real estate funds and the mode of real estate listed companies. The paper also build product model to analysis its characteristics and structure, analysis its operation process through the case, real estate businesses for reference through the analysis of advantages and disadvantages, the final judge them according to characteristics of the real estate business. The key REITs model that the real estate business in Zhejiang development judged by Comprehensive comparison of three REITs models, that is, trust scheme model as a starting point, and gradually the real estate enterprises in the development of the project REITs listed on the path.And then this paper analysis operation mechanism and the mechanism of the key REITs model, and analysis the key mode of REITs' organizational structure and operational processes, and make the product design taking example of actual operation of real estate enterprises in Zhejiang Province. The key mode of REITs has significance and impact for Real Estate Enterprises in Zhejiang Province.Next, this paper Analysis the operation process of Optimization REITs model in detail taking oushang Trust and Yuexiu-REITs listed in Hong Kong as an example. This paper Analysis the operation of the oushang Trust process, operation characteristics, and foreign REITs similarities and differences in comparison, although oushang trust has some characteristics similar to REITs, but not the real REITs. Yuexiu REITs is the real REITs products. Yuexiu-REITs listed in Hong Kong has experienced consolidation among the Group of assets, combing the group of assets, REITs listing process, its organizational structure characteristics and management features are all provided valuable for later reference.Finally, the paper aimed at the problems of enterprises development REITs currently exist in the risk-control and the issue of perfecting the legal system. Some suggestions were proposed from policies to build the legal environment, market supporting environment construction, risk prevention system construction, etc.In conclusion, this paper ultimately reviews the optimization REITs model that the real estate business development in Zhejiang province, analyzed the limitations of this study and the need for further research made use of REITs, and for real estate companies in Zhejiang, changing business development model with REITs is the inevitable choice.