Since the reform and opening up, our country's economy has entered a new historical stage of rapid development, and the residential conditions and urban appearance have been greatly improved. This is a huge achievement of the reform and opening up.

To vigorously and long-term develop the real estate industry, a diversified financing system must be established.

my country's current real estate investment products and financial market structure are single, which is closely related to the fact that a complete real estate investment and financial system has not yet been formed. A complete real estate investment and financial system should include diversified and standardized real estate financial products and markets.

With the full opening up of my country's financial market after 2006, China's future interest rate liberalization and the gradual realization of RMB convertibility, foreign banks and investment institutions will flood in, and they will also bring new financial concepts, financial products and financial ideas to the market. Bringing it in, this will have a greater impact on my country's real estate and financial industries, but it will also enable the real estate financial industry to integrate more quickly with international standards and generate more investment and financing methods.

For example, real estate investment trust funds are also innovations in real estate financial products for us. They collect funds from all aspects of society and use professional investment and operation management to provide real estate investors (including small and medium-sized investors) with real estate investment and income distribution.

It provides a realistic approach, and can also solve the problems of single external financing channels and financing difficulties for real estate companies, and promote the optimization of the capital structure and product structure of the real estate industry. At the same time, many advantages of real estate investment trusts also include fixed income characteristics, expected future sustainability

Growth, management transparency, etc.

In the eyes of some developer CEOs, REITS is to raise funds from the public, then carry out development, and then return returns to investors after the properties are sold.

In fact, many people still don’t understand the meaning of REITS.

Overseas, a real estate investment trust is generally a company that owns and operates income-producing real estate, such as office buildings, shopping malls, hotels, apartments and industrial plants, and sub-leases such properties to tenants mainly on a lease basis for shareholders.

Bring rental returns.

It is very different from traditional real estate projects where units are sold for cash.

Rental income properties have more stable cash flows and are more suitable for real estate investment trust financing.

In the United States, most REITS are listed and freely traded on stock exchanges. It should be emphasized that REITS do not have to be listed.

The United States, Japan, and Australia have different names for REITS, but the fundamental principles are the same.

Therefore, a "real estate investment trust" shall mean any investment vehicle that invests primarily in real estate and is established for the purpose of generating regular dividend income to investors.

I remember that in 1997, when I was working for Lian Sheng Group, one of the world's largest real estate investment groups, I was directly involved in the Lover's Bay office complex project in downtown Sydney, Australia.

As the manager of Australia's largest real estate investment trust at the time, Lian Sheng Group conducted lease negotiations with potential tenants for the unfinished office building. After the office building was completed, the entire office building was listed on the Australian Stock Exchange.

It becomes a real estate investment trust, so that developers can quickly withdraw large sums of money, and individual and institutional investors can have better investment products and the opportunity to enjoy asset appreciation and rental income.

Of course, in this process, many other institutions including investment banks, appraisal companies and real estate agencies also play a certain role.

Since Australia has more than 30 years of experience in real estate investment trust funds and has a relatively sound legal system, this way of operating is natural, which in turn has a positive effect on the real estate and financial industries.

At present, my country's individual real estate investors, real estate institutional investors (trust companies, insurance companies, fund companies and investment companies) and real estate companies all have a strong interest in real estate investment trusts.

The expansion of real estate investment trust fund business will be beneficial to the healthy development of my country's real estate industry.

Looking to the future, with the further development of China's economy and the further implementation of relevant national real estate policies, as well as changes in the economy, age, class type and urban structure of our people, China's own housing rate, rental rate, per capita living area, housing form

The quality and quality of real estate financial products will undergo further changes, and there will certainly be many opportunities and challenges that need to be addressed.

I think that in the future development, I will continue to participate in the real estate construction industry in our country.

Learning is useful and is a joy in life.