| Since China launched the strategy of international tourism island, real estate industry in Hainan province has experienced a rapid growth and has played an important role in the development of economy and society, such as:the growth of GDP、the promotion of employment and the improvement of tax. Bank credit is still the main capital source for real estate enterprises despite the long project cycle and intensive capital of real estate, the centralized capital source not only is not conductive to the healthy development of real estate, but also easy to cause the banks’ credit risk. Real Estate Investment Trusts raises funds from small-sized and medium-sized investors who can benefit from diversification. It can not only reduce the risk of investors, but also provide long-term, stable capital for real estate enterprises. This paper analyzed the development process of domestic and international REITs to sum up experience and enlightenment for Hainan. Furthermore, this paper analyzed the necessity and feasibility for the development of REITs in Hainan through analyzing the real estate characteristics and capital market conditions. This paper found that policy support and superior real estate assets provided favorable factors to develop REITs in Hainan. In the process of conducting REITs in Hainan, this paper putted forward the enclosed model and contract type was the most suitable mode in the initial phase. To build management mechanism of REITs in Hainan, five aspects were taken into account, such as:the structure of elements, operation process, risk prevention, information disclosure, termination and withdrew. At last, corresponding countermeasures and suggestions were propounded to solve the problem that we may encounter in the process of constructing REITs in Hainan. Development of REITs in Hainan can not only reduce the financial risk of the real estate enterprises, but also can promote the real estate financial innovation and form a healthy, stable real estate market. |
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