Internationally speaking, real estate investment trusts (REITs) are a kind of trust funds that collect the funds of a specific majority of investors by issuing income certificates, are managed by specialized investment institutions, and distribute the comprehensive investment income to investors in proportion. Different from domestic pure private trust products, REITs in the international sense are equivalent to funds in nature, and a few are private placements, but most of them are public offerings. REITs can operate in a closed mode or be listed and traded, similar to open-end funds and closed-end funds in China.
According to the survey data, the proportion of real estate loans in the new assets of financial institutions is rising rapidly, and about 70% of the real estate development funds come from the support of bank loans, which has become an industry highly dependent on the banking industry. The state has introduced a series of macro-control, and a series of policy credit tightening policies of banks have exposed the disadvantages of single financing channel for real estate. Therefore, building diversified, efficient and risk-dispersed real estate finance has become an urgent problem to be solved in China's real estate development. China's real estate investment trust is precisely because the state has strengthened the management of credit funds of real estate companies. Under the pressure of policy, real estate companies cooperate with trust and investment companies to ensure the capital chain, thus promoting the development of real estate investment trusts.