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heir incomes are more stable and easier to understand. obSER vaTIonS So as an investor in these China REITs, one

can buy the income stream generated by an industrial zone, toll road, portfolio of warehouses, or even income from waste

water plant. With the exception of the warehouses, these are more industrial and less pure real estate than most REITs.

must also admit, many of the projected dividend yields sound too high to me. Traditionally, REITs often pay out below

5% in other markets, but it also depends upon how the income is treated in terms of taxation, something Ive not seen clarified yet for China. Most of the REITs listed are backed by big state-related companies, so expect to see the government play steadying hand as the market and the REIT managers explore this new asset class. CHIna REIT ouTSIDE CHIna should note that several REITs covering Chinese real estate have actually existed for number of years, but they werent available to Chinese investors. These REITs were listed on the Hong Kong and Singapore stock exchanges and in many cases were linked to real estate assets developed by Singapore or Hong Kong developers such as Capitaland. It is positive step that more Chinese-based projects will be linked to REITs, and now they will be available to investors in China. This will not only help professionalize the real estate sector, but should add more stability to the overall stock market because regular dividends should encourage investors to buy and hold REITs, relying on their dividends for profit rather than trying to make profit from constant trading. ConCluSIon REITs offer great opportunity for individual investors to get exposure to real estate without having to buy an actual apartment. This means even small investors can participate in the real estate market in the form of listed REIT, which means the investment is also liquid, or easily bought and sold. The nature of listed assets means investment advisors will track and publicize th