The Research On The Legal Problem For C-REITs

For now, China’s real estate market exists the phenomenon that the Financialirrational “more money” and “less money”,the bridge “REITs” can solve well thisproblem by strengthening liquidity-related funds to improve the vitality of enterprises.You can say that the development of China’s real estate investment trust marketdemand and the development of securities markets and investors, which together pullthe Chinese REITs needs. The goal of this research is to through the analysis of thetheory of real estate investment trusts and comparative,compare with the UnitedStates, Japan, Singapore and other countries and China’s Hong Kong real estateinvestment trust legal system, and on this basis, then based on the country in REITsaspects of market practice and the legal system, to offer a few suggestions about theestablishment of the China real estate investment trusts.The main idea of the content and research is mainly composed of the followingfour parts:The first chapter is the basic theory of real estate investment trusts (REITs),introducing basic concepts theory of trust, characteristics and so on, leading into thebasic theory of REITs in turn, including the concept of REITs, the REIT’sclassification as well as the legal relationship,and the relationship between REITs andsecurities investment funds、real estate securitization、 real estate trust.In a result wecan establish a macroscopic understanding of REITs.The second chapter describes the development path of real estate investment trusts, analysing the the origin of the foreign experience, the evolution anddevelopment process of REITs, analysising the U.S. REITs is how to modify by theU.S. tax code with a gradual investment from a passive type tools evolved intoinitiative investment instruments.Introducing the U.S REITs’s current mode ofoperation, organizational structure, legal regulations and other core issues. Asia’sdevelopment through the introduction of ideas and legislative models in Japan, HongKong REITs, and analyzeing and comparing with the United States and Japan, HongKong REITs in different regions, different market environment, the legal environmentunder the management philosophy, investments, and then we can recive thesimilarities and differences between the legal system, making us to research differentcountry’s law of REITs.The third chapter describes the practice of REITs of our country such asOuShang trusts, Yuexiu REITs.analysing the two modes of quasi-REITs,characteristics, investment certificates, tax incentives, investment amount,etc. Andthen comparing with the United States, Japan and other mature REITs，and thenexploring the obstacles and difficulties encountered in the development of ourcountry.The fourth chapter analyze the legal tangle of REITs from a lack of specializedREITs legislation, trust income tax barriers, gaps industrial investment funds, andsecurities defect law,trust law and so on.The fifth chapter is divided into two parts, the first part is the launch of theconstruction of C-REITs required external legal environment, including trust, improve,trust income tax law established securities laws, aiming to contribute to a C-REITs inthe legal basis of the law environment. the second part is to construct C-REITs in theform of C-REITs mode of operation, investors, operating conditions, circulationenvironment, selection the type of model proposed for China’s legal.This paper aims to solve this contradiction of the social “liquidity” and the realestate market “shortage of funds”, by introducing real estate investment trusts (RETIs)to build this bridge.Through comparion of relevant experience,including America,Singapore, Hong Kong and other mature market economies and China’s development of REITs, summarizing the deficiencies and bottlenecks of China’s development.Andthen starting from the directions both reality and the future, from the existing legaland economic environment REITs in China; from the perspective of the future,byamending the relevant laws and regulations, improving the environment to make sureChina’s market economy can be capable of REITs with international standards.Construct the real estate market and then build the project pool and funds poolflowing bridges,which can provide useful lessons for the development of China’s realestate finance market.