Real Estate Investment Trust Study

Real Estate Investment Trust is a typical form of real estate securitization, which is a modern financial product innovation when the real estate industry and financial markets have improved and matured. REITs have played a dual role in the development of the real estate market and the capital market.At present, China's economy is in a phase of rapid development. On the one hand, the booming real estate market has a strong demand for innovative financing channels; on the other hand, investors have an urgent need for product innovation and investment channels. The both demand make the Chinese governments actively promote the process of financial deepening reforms gradually, accelerate the process of financial innovation as quickly as possible to consider the introduction and development of REITs.REITs, as a mature financial innovation in a real estate market of all countries in the world, have attracted all stakeholders to take an active interest. But we also should see REITs is a functional financial innovation under the conditions of the particular economic development, the real estate market, financial system and the external market environment, also it was a financial innovation which the government indirectly promoted by legal means. Therefore, China should study and learn from foreign experience and the developments of REITs on the basis of lessons, with the reality of our country, establish Chinese characteristics REITs legal norms promote the healthy and stable development of REITs.Ideas from the study, firstly this paper introduces the essence, types, structure and so on; subsequently deeply analyzes investment characteristics of REITs, that is high and stable earnings and low-risk; Then outlines the current situation of REITs in the United States and the Asian, and summed up the useful experience; then analyze status and the existing problems of the real estate finance, On this basis , explaining that REITs can improve the financial structure of the property; Finally, on the basis of a more in-depth study of adverse factors ,if currently China develop REITs ,putting forward the corresponding countermeasures. REITs to advocate legislation and to choose the conditions are ripe for the first pilot areas.