Studies On The Operation And Problems Of REITs Listed In China

Since the 1990 s, China’s real estate has become one of pillar industries that have wide impact on our society and economy with rapid development. But in recent years, real estate development enterprises need to actively seek and explore new ways of financing. As our stock market affected by the 2008 financial crisis has been in a constant downturn for a long time, there are sufficient idle funds in the society. The introduction of REITs is a good solution to the problem of sufficient idle funds on the one hand and shortage of funds of real estate enterprises on the other. Currently, Penghua Qianhai Vanke REITs is the only publicly traded REITs in mainland China. Listed on the Shenzhen Stock Exchange on September 30, 2015, its performance has attracted much public attention. We can draw lessons from its operation, experience and development.This paper mainly adopts the methods of literature review, empirical analysis and case analysis. Starting through the basic theory of REITs, this paper briefly describes the meaning of REITs, types, generation and development. Then it details the basic information related to the case. This paper analyzes the mode of operation of Penghua Qianhai Vanke REITs from five aspects, which are form of organization, way of operation, investment, profits and distribution, and ways of raising funds and trading, analyzes market performance of Penghua Qianhai Vanke REITs since its establishment from three aspects, which are the relevance between Penghua Qianhai Vanke REITs and the stock market, price volatility and investment income before revealing its characteristics and the existing problems of the operation. Finally, this paper provides theoretical thinking for the mainland REITs market as well as suggestions concerning the issuance of more REITs in the future.By taking Penghua Qianhai Vanke REITs as an example, this paper studies the operation and problems of real estate investment trusts in China to provide referential real case for the mainland to issue more REITs products in the future, and promote the establishment and development of REITs market in China faster and better.