Preliminary Studies on REITs’ Path Choice of China
|School||East China University of Political Science|
|Keywords||Real Estate Investment Trust (REITs) Foundational Theories Organizational Model Path Choice|
Real Estate Investment Trust (REITs) is a real estate financing instrument, which is a form of securitization. REITs originated and sophisticatedly developed in the United States. REITs have some inimitable advantages which other real estate financial instruments do not have, such as the expansion of financing, risk diversification, professional management. Its unique product design can extremely meet the demands of participants in the real estate market.In the current real estate market of our country, Real-estate developers have pressing demands for direct financing. But in the folk, there is huge private capital which is lack of investment channels that can bring steady profit. The introduction of REITs will not only be able to provide a real-estate financing channel for enterprises but also provide new ways to invest for social idle capital. This act make small and medium-sized real-estate investors share the benefits of development.According to China’s actual conditions, combined with the inspecting of legislation of the United States and Asian regions, I think that China should remove some barriers of legal system before REITs being introduced and developed in China. For example, in Securities Law of our country, the definition of "securities" is so narrow that it dose not contain the beneficiary certification of REITs. In face of various legal obstacles, what kind of organization model and path should we choose? If it is resolved, how can we complete our country’s legal system? In the thesis the author will investigate these issues in accordance with some principles.This thesis is divided into four chapters:the first chapter introduces the foundational theories of REITs, respectively expound the basic concept of REITs, the differences between REITs and related concepts, REITs’two basic forms of organization and REITs’advantages; The second chapter introduces the legal systems of REITs in the United States and Asian countries, and their impact on the development of our country’s REITs; the third chapter, according to our country’s national conditions, sets out the current development situation of REITs and the current Laws and regulations of REITs, and points out the main problems in our country’s Trust Law, Securities Law and the law on the industrial funds; the forth chapter sets out the organization mode and path selection of our country’s REITs, and make some suggestions on our country’s macro-environment.