Research On Development Status Of Real Estate Investment Trusts

Real estate is the mainstay of our economy,which is of great significance for social and economic stability when developing healthily and long.With the national control policy on the real estate industry overheating,difficulty of bank lending to real estate financing difficulty grows.It is imperative to seek new ways of financing and promoting development of the industry considering national conditions.Real estate investment trusts(REITs)is considered to be a more ideal choice combined with the domestic financial market and foreign experience.REITs promote the healthy development of real estate in foreign countries well as a way combining real estate market and capital market.But it is wrong to apply directly over the work when the Chinese real estate industry started late and the financial system is not perfect.We need study and discuss how can REITs operation smooth and healthily under the current legal system and domestic financial environment.In this paper,we analyzed the development of Chinese real estate investment trusts and put forward our understanding and suggestions.First,the concept and types of real estate investment trusts were set forth.Then the underlying feasibility and development base of real estate investment trusts were given considering the domestic economic environment.And then we pointed out problems faced by domestic REITs by analyzing the relevant domestic case.Finally,further suggestions of REITs in our country and operation mechanism were put forward.It is recommended to promote real estate investment trusts early,which can consider to the reform of commercial real estate supply side.