Financial Instruments for Attracting Investments in the Real Estate Market

Subject of the study: REIT (Real Estate Investment Trust) as equity investment instrument issued by management companies that are involved in purchase, maintenance and construction new real estate, can also buy mortgage-backed securities from banks.The object study is analysis estate market China.The purpose work to draw a conclusion about attractiveness modern conditions relative other tools identify development prospects REITs ChinaResearch methods: descriptive-analytical, comparative-comparative, statistical, formant, contextual methods.This thesis finds still very immature not widely accepted mass investors China. The puts forward three suggestions for apartment China: streamline structure avoid excessive complexity opacity; promote information transparency regulated disclosure mechanism; encourage protect constraining taking on too much debt. Finally, concludes REITs, shown US experience, should be regarded great opportunity cultivate Chinese investors’ confidence stock with its simple plain-vanilla structure. With government’s strong ambition increase housing affordability deleverage economy, we foresee continuous legislative breakthroughs more systematic improvements field.Novelty elements: current operators using debt-financing channels instead financing. As result, leverage level sector may really decreased at all, but rather increased. regard this, overall emerging key factor must monitored embody an vehicle.This dedicated solve number difficulties relevant fields economy.