Legal Control of Market Risk Regarding the Real Estate Investment Trusts in China
|School||East China University of Political Science|
|Keywords||Real Estate Investment Trusts (REITs) Capital market risk legal control|
With the rapid development of China’s real estate industry, real estate corporate and investor all have great enthusiasm of financial investment and innovation. As a new investment and financing tool, there will be a bright future for The Real Estate Investment Trusts (REITs). However,its development time is short,the relevant laws and regulations are not Perfect either, which make the REITs Contains a greater amount of risk factors during its rapid development times. To prevent risks arising from the REITs , which have appeared in the past practice, is a very tough issue before legislators, and how to use legal methods to control the risk of the REITs are also the main content of this article.Other than preface and epilogue, the scheme of the discussion is divided into four chapters as follows.Part 1 gives a definition on the REITs. It includes the concept, and characteristics of trust, the relationship between trust and investment funds and the definition, characteristics, development overview and types of the REITs.Part 2 is to analyze the general theory of the capital market risk and the basic values of the laws on the risk control. On the basis of the analysis, the author research the existing market risk of the REITs in China, and point out the lack of legal control on the market of REITs that leads to depress raising efficiency and incur risks. Part 3 is to introduces the legal systems which are decentralized legislation of REITs in United States,and the legal systems which are unified legislation of REITs in Asian countries and regions. It also compares and analyzes the characteristics of two legal systems.Part 4 is to analyses legal barriers of REITs in China, and discusses the building of legal system of REITs in China, proposed the legislative proposals about developing special law and other legal methods for the purpose of market risk control.