The Discussion On Current Development Problems And Future Paths Of C-Reits

With the accelerated process of economic globalization and China’s construction of developing Chinese characteristic economy, China’s real estate industry is showing a trend of increasingly rapid. The real estate industry in China in recent years is one of the most rapid developing section of national economy and occupies a very important position. Because of the characteristics of the real estate industry itself, such as large investment, long construction period, the capital turnover is slow, causes the real estate industry and the financial industry are closely related. And real estate financing mode at present by the bank and trust becomes more and more unmeet the need of the development of the industry. The financial system also accumulated huge amounts of risk. Institutional imbalance and institutional defects is calling for system innovation of our country’s real estate financing."Real estate investment trusts (REITs)" which has a hundred years of history, fifty years of development practice of the international real estate market, and a new financial tools in China, began widespread attention. Even some experts predict:REITs will become one of the most important financial innovation in China in twenty-first Century. Real estate especially commercial real estate and low rental housing, affordable housing construction needs a large amount of money (precipitation of large investment, long payback period rent), they requires support from C-REITs products.This paper starts from the basic concept, is divided into four chapters to six dots to elaborate Chinese real estate trust products C-REITs. Firstly, introduce and clear the basic concepts of REITs. Second, we study the relationship between REITs and other real estate financing tools, such as real estate company IPO, private RE fund, including the trust between equity and debt. Third, we look at the REITs market, including the USA, Japan and Singapore etc., the entire REITs product management structure. Fourth, we talk about the current development of C-REITs, some difficulties and problems it faces. Fifth, we believe the commercial real estate financing problems should be solved in the real C-REITs products, and proposes the C-REITs besides a financial product, it also brings new business model. Finally, we learn from foreign advanced experience, and discusses3kinds of possible paths for the future development of C-REITs in china.