Research On Credit Risk Of REITs In Real Estate

In recent years,with the relevant regulatory policies of the real estate industry introduced gradually,the financing of Chinese real estate enterprises has been hindered unprecedented.Asset securitization,as a new kind of financial innovation tools,plays a unique part in enhancing the liquidity of the real estate and reducing risk and so on.REITs projects is a recent new rising innovative ways of real estate securitization,whose research in the credit risk has important meaning in terms of theoretical research and practical exploration.In this paper,the credit risk of real estate REITs project and its evaluation method are studied by taking the " China Merchants Chuangrong & Fusheng Group Asset-backed Special Plan" as an example.First of all,this paper elaborates and summarizes the theories and literatures related to the credit risk of real estate REITs projects,laying a theoretical foundation for the paper.Second,It analyzes the case of "China Merchants Chuangrong & Fusheng Group Asset-backed Special Plan".Through the elaboration and summary of the project basic situation and the analysis of property credit quality,the paper finally use the KMV model,project cash flow analysis and stress testing tools to do credit risk effectively analysis of the project.Finally,this paper summarizes the research of the whole paper,and puts forward relevant Suggestions for the prevention of credit risks of real estate REITs projects in China.In general,the real estate REITs project can effectively prevent the project's default by high-quality real estate,perfect transaction structure and credit enhancement measures.The qualitative and quantitative methods used in this paper are applicable to a certain extent.On one hand,it evaluates the credit quality of assets and the credit prevention measures of projects.On the other hand,the quantitative methods of KMV model,cash flow analysis and pressure test are used to assess project credit risk.