The Study Of The Influencing Factors Of Real Estate Investment Trust Funds

At present,the real estate industry is still a pillar industry of our country.But as a result of the limitation on the real estate structured finance and real estate bonds,real estate industry is facing huge funding gap.Reliance on bank lending,of real estate industry deteriorated the financing enterprise's financial structure and increased the financial risk in our country.In addition,high house prices improve the threshold of real estate investment for the small and medium-sized investors.In foreign countries,the real estate investment trusts(REITs)perfectly solve the problem of the three parties.The development and research of REITs in foreign countries has been quite mature.Hong Kong started developing REITs market in 2005 and some real estate projects in mainland China went to Hong Kong for REITs.Though the concept of the introduction of REITs started in the early 21st century in mainland China,the study did not go deep into the quantitative analysis level.Based on this,this paper starts from the analysis of the situation of REITs,combining the study of REITs both at home and abroad,then theoretically analyse the influence factors of REITs and risk income relations and make use of Hong Kong REITs market data for empirical testing.Finally,we explore suitable paths for the development of REITs in mainland China and the direction for improvement to put forward relative suggestions combining with the existing problems and the actual environment in our countryThe main conclusions of this paper is:(1)REITs can get excess returns,but the influence degree of the three factors on the excess returns differ.(2)The macroeconomic factors such as economic cycles,interest rates will affect the REITs profits,REITs can hedge against inflation.(3)The rate of return on REITs is closely related to other investment assets,the return of stocks and real estate can both explain the change of the REITs returns in some extent.(4)The suitable mode for the REITs in China is equity REITs with company type,public offering and closed operation.But there is still a gap existing in REITs of China and the international standard REITs with the problem of lacking in speciality and imperfect mechanism.The main innovation of this paper is that it systematically analyse the situation of REITs and compare the development of REITs in the United States,Singapore,Hong Kong and the mainland China.Besides,we respectively analyse the macroeconomic factors and microscopic assets factors and use the market data of Hong Kong for empirical test.We also use the three factors of FF model to test if REITs can get excess earnings and study the degree of the influence so that we can provide theoretical basis for evaluation of REITs returns.Finally,we analyse the current problems existing in REITs of mainland China objectively and put forward policy suggestions for the development of REITs.