Analysis Of Market Risk Of Real Estate Investment Trust Fund In China

XReal estate investment trusts(REITs)were born in the United States in the 1960 s.They are emerging investment and financing methods in the financial innovation process.They not only solve financing problems for the real estate industry,but have not yet brought stable investment returns for investors.With the rapid development of China's economy,the process of urbanization has deepened,and the real estate industry has developed rapidly.During the 18 th National Congress of the National People's Congress,the government will destock and leverage as the key work of the real estate industry.Under this background,it is extremely difficult for real estate development to obtain financing through bank loans.High leverage and financing difficulties are mutually constrained and it is extremely important to expand the financing channels.Real estate investment trust products,exploring the combination of industry and finance in the real estate industry is imminent.China's REITs have experienced four stages of development,stagnation,pilot and promotion.After the 2008 financial crisis,a large number of studies on REITs indicated that REITs performed better than other similar financial instruments in the financial crisis.Under this background,the growth rate of REITs gradually rebounded,and the yield performance was stable and good.China also approved the trials of REITs for affordable housing in Beijing,Shanghai,and Tianjin in2010.However,the REITs in China have inadequate laws and regulations,the regulatory bodies are not clear,and taxes Due to the lack of policy and low income distribution ratio,the importance of analyzing the market risk of REITs in China is significant.This thesis mainly studies the market risk of real estate investment trust funds.During the research process,the definitions,types,characteristics,operating modes,and definitions and types of market risks of REITs are combed,which pave the way for the analysis of market risk of REITs and the REITs market in China.The current status of risk is analyzed in a normative way.Through the screening of indicators,data collection,and selection of models,empirical analysis of market risk of REITs is conducted.Finally,recommendations for prevention and control are proposed based on the conclusions of the research.The innovation point of the article is embodied in the analysis of REITs,using literature analysis,Theoretical analysis,empirical analysis,andnormative analysis are used to analyze the market risk of China's REITs.Based on empirical analysis,market real estate investment trust fund risk prevention and control recommendations are proposed.According to theoretical induction and empirical analysis,the paper concludes that REITs are a stable investment tool with stability and risk resistance.The market risk of REITs exists objectively.As a financial product,real estate investment trust funds are destined to accompany the market risks.Risk is an uncertainty.Risk management aims to manage risk rather than eliminating risk.China's REITs market risk is divided into economic cycle risk,interest rate risk,inflation risk and price risk,among which price risk includes stock price risk and real estate price risk.The impact of market risk factors on REITs' yields gradually decreases over time.Economic cycle,moderate inflation,real estate prices are positively correlated with REITs' yields,interest rates are negatively correlated with REITs' yields,and they are analyzed through the market risk of REITs in China.And empirical analysis shows that economic cycles,moderate inflation,real estate prices are positively correlated with REITs volatility,and interest rate risk is negatively correlated with REITs volatility.In addition,the correlation between stock prices and REITs volatility is not high,comparing the size of the two kinds of returns and the availability of changes.Compared with stocks,real estate investment trusts have higher yields,are more stable,and have excellent characteristics such as stability,anti-inflation,and anti-risk.They are worthy of development as a robust investment tool.Combining with the analysis results,the prevention and control countermeasures of market risk of REITs are proposed.Firstly,REITs regulations and systems are improved,and market risk system shields are established;secondly,information transparency of REITs is enhanced and a market risk information disclosure shield is established.The higher the degree of information disclosure,the accurate estimation of the REITs yield by investors reduces investment uncertainty.The lower the asymmetry of market and investor information,the more accurate the prediction of REITs can effectively correct market biases and prevent market risks;The third is to standardize the management of REITs and establish market risk management shields.The fourth is to build a REITs warning system and establish a market risk warning shield.By constructing the REITs risk warning system to assess market risks and timely adjusting the operation management strategy,the risk loss can be controlled to a minimum.Therefore,the construction of a risk warning system is of great significance to the prevention and control of market risk.Fifth,enrich REITs asset portfolio andestablish market risk hedge shields.REITs should diversify investment rationally.In real estate investment,real estate of different regions and types is combined to diversify investment holdings to hold real estate to hedging risks,so as to reduce the overall risk without reducing the expected rate of return.Invest in a few financial derivatives to hedge market risks.