Comparative Analysis of Urban Renew Investment Trust System and Securities Investment Trust System in Taiwan.

• Main Authors: Yeh, Ching-Hai, 葉清海
• Other Authors: Liao, Hsien-Hsing , Ph.d.
• Format: Others
• Language: zh-TW
• Published: 2000
• Online Access: http://ndltd.ncl.edu.tw/handle/21225900437623724402

碩士 === 國立臺灣大學 === 財務金融學研究所 === 88 === Thesis Abstract TITLE : Comparative Analysis of Urban Renew Investment Trust System and Securities Investment Trust System in Taiwan INSTITUTE : Graduate Institute of finance, National Taiwan University GRADUATE DATE : June, 2000 DEGREE CONFERRED : Master STUDENT : Yeh, Ching-Hai ADVISOR : Liao, Hsien-Hsing , Ph.d. The securititation of real estate made a big progress for urban renew investment trust system. However, until now no one applies for the licenses of urban renew investment trust company. Even thought "The Urban Renew Act" has been announced on May 14, 1999 and the related regulations such as " Code of Establishment, Supervise and Management of Urban Renew Investment Trust Companies " and " Code of Utilization and Management of Urban Renew Investment Trust Funds " have been passed in the following dates. Obviously, this new market does not drive most of investors'''' attention and interesting. In order to understand why this new system does not work, we have to research for it. The government''''s policy generates the planing of urban renew investment trust system. The basic structure of urban renew investment trust system is similar to the structure of securities investment trust system. From the aspect of the laws, there are 3 main regulations for the management of urban renew investment trust system. "The Urban Renew Act" is so called mother law and the other 2 regulations, "Code of Establishment, Supervise end Management of Urban Renew Investment Trust Companies" and " Code of Utilization and Management of Urban Renew Investment Trust Funds" separately. Most of management of urban renew investment trust system follows up the management of securities investment trust system which has been developed for 17 years in Taiwan. Therefore, these regulations of urban renew investment trust are similar to those of securities investment trust. This thesis would like to discuss those problems for executing the regulations and try to evaluate the possibility for realizing the urban renew investment trust system by comparing with those differences between two systems and designing the model for running the urban renew investment trust company. The theory of urban renew investment trust system came from Real Estate Investment Trusts (REITs) in U.S.A. In order to understand the basic theory, I introduced the history, development, those categories and those regulations in U.S.A. I also wrote about securities investment trust system in Taiwan which is also the main structure of urban renew investment trust system for developing the progress and evaluating the development of urban renew investment trust system. For analyzing those differences between two systems, I compared those regulations and the situation in reality. After comparing " Code of Establishment, Supervise and Management of Urban Renew Investment Trust Companies" with "Code of Management of securities Investment Trust Industry", I found out that 16 of the 46 characters of management of the companies, which is 33%, are the same. Analyzing "Code of Utilization and Management of Urban Renew Investment Trust Funds" and "Code of Management of Securities Investment Trust Funds". I discovered that only 9 of the 39 characters of funds management , which is 23%, are the same. It suggested that it would be developed different ways for managing different investment objects. For analyzing two systems, we may design those models for managing an urban renew investment trust company and evaluate the possibility to run those companies. However, according to the limitation of policy, environment, market, specialists shortage and executing difficulty, it still has a long way to go to have the same size of securities investment trust companies. It is right to establish urban renew investment trust companies and to issue urban renew investment trust funds. It will benefit the departments of the government, those habitants in the renew area, the executors of the urban renew planes, those urban renew investment trust companies and those potential investors. However, no one applies for it. Why? From my research, I concluded 8 problems. It is nice to establish the urban renew investment trust system. However, the difficult and conflict decreased the possibility of the success. I did not mean that there is no chance to succeed. I suggested 9 smooth ways to develop the urban renew investment trust market in Taiwan. In the long term, it is the right way for government to abolish urban renew investment trust system or to develop real estate investment trust system. We, including the industries, government, the academicians and the investors, have to work together for struggling for the development of real estate investment trust. Key Words : The securititation of real estate, The Urban Renew Act, urban renew investment trust company, urban renew investment trust fund, Real Estate Investment Trusts (REITs), securities investment trust company, securities investment trust fund.