Legal Analysis And Localization System Construction Of Public REITs

Publicly offered REITs(real estate investment trusts),as financial products that can revitalize existing assets and have many advantages such as direct financing and combination of industry and finance,have the dual characteristics of trust and fund.It is produced in the United States,after tortuous practice,has been transplanted and applied in more than 40 countries,greatly promoting the economic development.Since the beginning of the 21 st century,the research on REITs has been hindered due to the imperfect legal system and market environment,and only REITs similar to public REITs have emerged.In the process of REITs practice accumulation,it is imperative to promote public REITs in order to alleviate the national economic downturn,the pain of development transition and the adverse impact of the epidemic.With the promotion of national ministries and commissions,public REITs opened a new chapter with the release of the "Notice on Promoting the Pilot Work of Real Estate Investment Trust Funds(REITs)in the Infrastructure Sector"(No.40).Although the public REITs issued at present have a good market performance,there are also many problems in their operation,which become hidden dangers for their long-term development.The main problems are as follows: the unified regulations on public REITs have not been issued,which is not conducive to the long-term development of public REITs;The assets of public REITs are not smoothly connected,which leads to the obstruction of the issuance of public REITs for some suitable projects;The share of original shareholders of public REITs is too large,and there is no protection measures for public investors.The tax supporting system of public REITs has not been followed up,resulting in unclear tax system and double taxation.The regulatory system of public REITs is not clear,and it is easy to have multiple supervision and weak supervision.By reflecting on the practice of public infrastructure REITs in China and drawing on the experience of mature public REITs abroad,we explore the localization system construction of public REITs in China at multiple levels and three dimensions.We should accelerate the top-level design of public REITs and lay a solid foundation for their long-term development.Smooth the connection channel of public offering REITs and accelerate its progress;Strengthen the interest protection mechanism of public REITs investors;Optimize the tax support system for public REITs to reduce their development costs;We will establish a whole-process,multi-subject,and multi-level legal and regulatory system for public REITs to facilitate their healthy and stable operation.The localization of public REITs and other reforms are the fundamental foundation for the stable and long-term development of public REITs in the future.