Research On The Development Of China Real Estate Investment Trusts(REITs)

As an important part of China's economic development,the real estate industry has the problems of rapid growth of house prices and narrow financing channels at present,which leads to the excessive reliance on bank loans in the real estate industry to increase the systemic risk.For the stable development of national economy,we began to seek a new channel of financial reform and innovation,real estate industry transformation and upgrading.The mature experience of real estate investment trusts(REITs)in the international market tells us that REITs are the inevitable choice to promote the transformation and upgrading of the real estate industry.Since China proposed to allow the development of real estate trusts in 2002,it has continuously explored and launched " C-REITs" products that have similarities with standard REITs in mature markets.As of December 2018,China has successfully issued 43 REITs products and the size of the issue reached 90.32 billion yuan.Although the development of Chinese REITs is quite fruitful,there is still a gap with the mature REITs products in the world.The key difference is that the Chinese REITs is mostly private and only allow institutional investors to join.The reasons that REITs can not play its essential significance are the lack of preferential tax policy and liquidity and the high threshold of investment.The development of REITs in China has broadened the financing channel of real estate industry,but it has not achieved the effect of popularize the investment income.The overheating phenomenon of real estate investment still exists.By means of literature analysis,comparative research and case analysis,this paper studies and compares the origin,development status and system construction of REITs between the United States and China,and selects two single-class REITs products that have been issued successfully in China.Compared with the development of REITs in the United States,it is pointed out that the establishment of REITs in China is far behind that of mature REITs,and the auxiliary effect on real estate is not obvious.I think that the development of REITs in China is necessary,but we should sum up experience in practice,introduce relevant policies to support,seek new channels for real estate financing,and provide new thinking for the financial investment.Finally,it is suggested that the future development of China's REITs should pay attention to four aspects:regulating the operational order of the real estate industry,improving the legal system of REITs,improving the operational structure of REITs,and cultivating REITs management talents.The paper is divided into five chapters.The first chapter is the introduction.The second chapter is the summary and related theories of REITs.The third chapter analyzes the origin and development of Chinese REITs,analyzes the innovation and deficiency of existing REITs,and points out the obstacles to the development of Chinese REITs.The fourth chapter introduces the establishment conditions and development status of American REITs,and summarizes the enlightenment to the development of REITs in China.The fifth chapter is the policy suggestion.It is believed that the future development of China's REITs should proceed from the four aspects of self-management of the real estate industry,legal system,operational structure and talent cultivation,we should introduce policies and regulations to provide strong support for the promotion of REITs.