The Study On Legal Carrier Of REITs Publicly Offering In China

REITs are generally translated to real estate investment trusts in China.REITs are financial investment products that raise investors’ funds by issuing income certificates.REITs can be issued in public or non-public ways.REITs invest most of the raised funds in real estate and distribute most of the proceeds to investors.REITs originated in the United States and developed rapidly in Europe,Asia,Hong Kong and Taiwan.Development of REITs in our country has a huge boost to the real estate market and financial market,but at present,the issue of REITs products(for the issuance of REITs products in China is different to REITs products,therefore the Chinese REITs products issued by called REITs)compared with standard REITs products also has bigger difference,which leads to standard REITs function not full play.Domestic scholars are increasingly calling for the improvement of REITs,supporting facilities and the introduction of standard REITs as soon as possible.One of the most obvious differences between class REITs and standard REITs is that the class REITs issued in China cannot be publicly issued and can only be issued to qualified investors.The standard REITs can choose public offering or non-public offering.The public offering of REITs provides a chance for small and medium-sized investors to invest in real estate.REITs are faced with many obstacles in public issuance in China.The biggest obstacle is that REITs public issuance does not have a legal carrier,that is,the legal carrier carried by REITs cannot be publicly issued.At present,the legal carrier of REITs in China cannot be publicly issued for two reasons:Firstly,there is a lack of legal basis for the public offering of REITs.Second,if REITs in China adopt the existing legal carrier for public issuance,it will be contrary to the relevant legal provisions in China.According to the relevant laws,the legal carrier can only be issued to qualified investors,but not to small and medium-sized investors.Therefore,For the REITs public offering in China,the legitimacy of the public offering carried by the legal carrier of REITs should be firstly solved.This paper is divided into four parts:The first chapter introduces the basic theory of REITs,which is divided into two parts.The characteristics of REITs,REITs have their own legal characteristics and the standard REITs are often publicly listed;The second section focuses on the legal carrier of REITs.Each country has made provisions on the legal carrier of its own REITs through legal provisions.The second chapter mainly introduces the legal carrier of Chinese class REITs.This chapter is divided into two sections: the first section introduces the development process of class REITs in China,and the exploration process of class REITs in practice is also the exploration of class REITs on public issuance.The second section mainly analyzes the legal carrier of class REITs.It is divided into two sections: the first section introduces the transaction architecture of class REITs,including "two-layer SPV" structure and "single-layer SPV" structure.The second section introduces the legal carrier of class REITs,and classifies the legal carrier of class REITs in China according to the difference of issuing SPV.The third chapter analyzes the legal carrier obstacle of REITs public offering.It is divided into two sections: the first section elaborates that the legal carrier is faced with the legal obstacle of the absence of special legislation.Different from other countries and regions,China’s REITs legislation is blank.The second section elaborates that the public issuance of REITs using the existing legal carrier is in conflict with the existing legal provisions in China.The fourth chapter is the proposed part of this paper,namely what kind of legal carrier REITs use to achieve public offering,which is divided into three sections: the first section explains that REITs public offering should adopt special legislative mode.Exploration in the second quarter REITs public offering law issued by the carrier construction in our country,which is divided into four levels: one is the macro level should trust type REITs as legal carrier,the second is the micro level REITs in China public offerings available form of specific laws carrier,three is according to our country present legal system and practice law under the optimal choice of carrier,4 it is to let go of REITs public offering issued shall be the difference between other financial products,and carries on the special legislation in the future,the REITs liberated from the structure of asset securitization.The third section describes the other supporting systems that need to be improved for the public issuance of REITs.