Research On The Development Of REITs In China’s Commercial Real Estate

For the last decade, China has witnessed greatly development in real estate industry. Real estate has become one of the driving forces for national economy. As a typical capital intensive industry, the support of found is of paramount importance for property developer.At present, real estate industry in our country demonstrates two obvious characteristics: for the one hand, it excessively depends on bank’s loan, and less financing channels are found for collecting money; for the other hand, the housing price increased rapidly in recent years. In order to prevent the bubble on real estate, a series of policies were issued to control it from the macro way. Without doubt, real estate companies are facing with serve challenges, which force them to broaden their ways on financing. At the same time, a number of investors are rushing to pour their money out. Thus, a new financing channel, REITs, is launched to connect the capital demander and supplier.The first chapter of this paper mainly introduces the research background and the significant of this research. It points out that the capital chain of business property is confronted with grim challenge, and creating more financing methods is urgent under such circumstance. In order to solve this problem, it is better to explore the method of direct financing. Among them, REITs is one of the best ways. Except for the background and meaning of this research, this chapter also explains the content and methods for doing the research. It also shows the frame and technology roadmap of this research.In chapter two, the paper states the relevant concept, features and classification of REITs. It introduces some current REITs products in China, so as to explain its concept clearly. In chapter three, this thesis brief introduces the development process of REITs in American and Hong Kong. It provides some reference for Chinese market.The forth chapter describes the current situation of business property. It analyzes the necessity and feasibility of REITs in business property by explaining the economic environment of domestic trust and the effect of exerting REITs in business property. The fifth chapter discusses REITs in business property from some aspects, including its income, tax, law, risk as well as the operate mode.In chapter six, the thesis analyzes REITs in China by studying a practical case. In the conclusion, the paper sums up the main content of this thesis briefly, and provides some constructive suggestions for develop REITs. It also visions the further development of REITs in business property.