A Research on the Localization of Real Estate Investment Trusts (REITs)
|School||Jiangxi University of Finance|
|Course||Management of land resources|
|Keywords||REITs Experience Learning Development Mode Breaking through the Bottleneck|
Real estate industry is highly capital-intensive that could not be developed without adequate financial support. Large scale and long period of investment is the important feature of it. At present, due to rising real estate prices and real estate enterprises’ excessive dependence on indirect financing to banks, the People’s Bank adopted a series of tightening lending policies in order to eliminate bubbles for risk aversion. In tight lending policies, the real estate enterprises with tighter capital chain have a lot of difficulties. At the same time, as the gradual increase of residents’ income, a huge amount of scattered funds has been formed. Due to the lack of investment channels, the residents have been unable to utilize their huge savings in multi-investment. So, as a sort of real estate investing and financing tool, the development of Real Estate Investment Trusts (REITs for short) become an inevitable necessity. REITs helps to spread the systematic risk of real estate industry and reduce the non-performing loans of commercial banks, while providing opportunities of small-amount investment with good liquidity to the medium and small investors.Since the first publicly traded real estate investment trust launched in United States in early 1960s, plentiful experience for REITs development has been accumulated. It has very important theoretic and practical vale to draw on overseas REITs development experience and combine with domestic actual situation to develop the local REITs.In this paper, a comparative study and practical analysis will be applied for research, and also the research results at home and abroad will be referred to as a reference. Through the land economics, real estate investment and finance, law, real estate investment trusts related disciplines, there is a combination of comprehensive research on the problems in the process of localization of REITs in this paper. At first, this paper describes the principles and operating modes of trust and investment funds. Subsequently, it refers to operating experience of REITs of developed countries and regions for reference, including the study on the developing situation and characteristics of REITs in United States, Australia, Hong Kong. Then, it research on domestic trial of REITs for the feature analysis of development situation of domestic REITs. On the basis of overseas experience combining the domestic situation, the article proposes the idea of domestic REITs development, and the basic types as well as developing mode. It holds the idea in this paper that, in reality the operating environment of domestic REITs needs more improvements. It still has many obstacles and development bottlenecks. These obstacles and development bottleneck can be distinguished and interpreted by several angles as policy system, laws and regulations as well as the real estate property rights. To point against the present condition of the restricting factors of the development of REITs, this paper proposed suggestions and measures of improvement of operating environment of REITs, construction of framework of laws and regulations and strengthen the supervision and information system of REITs.