The Analysis And Enlightenment Of Introducing American Fund Financing Into China Pension Real Estate

In recent years,China's aging population has continuously increased.According to the data of the national council on the aging,as of the end of 2017,the number of elderly people aged 60 and above reached 241 million,accounting for 17.3%of the total population,and the number of elderly people aged 60 and above reached 158 million,accounting for 11.4%of the total population,which has become a major social issue that has received increasing attention.As the ageing trend in China has accelerated,the pension industry has become the "sunrise industry" in the eyes of many companies.The old-age housing,which is the carrier of the pension industry,has become the focus of many investors.In the process of the development of old-age real estate,its financing model is an important focus of many investors and a hot spot for international financial.However,China's traditional financing channels are single and cannot match the rapid development of this industry,which has become a major obstacle to the rapid development of the industry.With the rapid and mature development of the pension real estates industry,the financing of pension real eatates has increasingly become a hot issue in international finance.Real estate investment trusts(REITs)is a type of fund that collects the funds of a specific majority of investors by issuing revenue vouchers,and are managed by specialized agencies and distribute proceeds to investors.Not only can it widen the investment and financing channels for huge social capital,but also it can ease the development bottleneck which China's current real estate financial industries face with to some extent.However,REITs is still in its infancy in China.There are deficiencies in the legal system,investor recognition,and product design.In contrast,REITs is more mature in developed countries,especially in the United States.The three listed pension real estate REITs firms in the United States such as the company's health care real estate investment trust company(HCP),Welltower company(Welltower),and health insurance product investment trust company(Welltower)have made great contributions to the development of the financing model of REITs in the US pension industry.This paper uses qualitative analysis and theoretical research methods to analyze the development prospects of China's pension industry,and explores a suitable development path for the application of REITs model in the pension industry.From the perspective of REITs economics theory,this article puts forward the enterprise financing theory,capital market theory and financial development and innovation theory related to the pension real estate REITs,and believes that the corporate financing is in direct proportion to the corporate value,and lays a basis for the REITs financing model into the pension real estate.The paper followed by the introduction of traditional financing models for pension funds,such as ABS(asset-backed bonds),BOT(build-operate-transfer),PFI(civil initiative financing),PPP(government and social capital cooperation)analyses the actual operation of the traditional financing model and summarizes the drawbacks of its development,thus laying a realistic foundation for the introduction of the REITs financing model for the pension real estate.In the process of introducing REITs financing model for pension real estate,this paper selects the earliest and most mature United States as a bulging,and analyses the feasibility environment for the introduction of REITs financing model by US pension real estate.Based on the experience of the US pension real eatate REITs financing model,it explores the feasibility and operation of the financing model of REITs in China,and proposes some related recommendations such as the establishment and improvement of the legal system and taxation system,the improvement of the information disclosure systemand the external supervision,training the professionals and optimization of institutional design,the search for REITs risk and development balance and so on to promote the maturity of the development of pension financing real estate REITs model.In addition to theoretically analyzing the financing model of REITs,this paper innovatively adoptes the monthly yield data of 14 US-listed REITs companies from 1978 to February 2018 for unit root and KPSS stationarity tests.The series of returns is stable,and there is no heteroscedasticity and no autocorrelation.Next,the ARCH model is established to fit and interpret the volatility of the income of American pension real estate REITs.It is found that the REITs' volatility of return rate has agglomerative trend,with a small degree of change,and generally shows a growing trend,indicating that the return series is appreciable.Through the establishment of the GARCH(1,1)model,we forecast the returns of the US pension real estate company REITs,and find that the volatility of this return series has a clear relationship with the size of its past fluctuations,and it has the characteristic of“long memory”.Therefore,with the empirical data,we have proved that the US pension fund REITs financing model has a considerable and stable rate of return,thus we illustrate that it is reasonable and feasible to use the REITs financing model to alleviate the pension financing dilemma.This article comprehensively analyzes the pension financing real estate REITs financing model.In view of the deficiencies of the original related literature that only unilaterally research the old-age real estate or REITs financing model,this paper creatively integrates the pension financing real estate and the REITs financing model,innovating the research perspective.At the same time,the empirical analysis of the ARCH model and the GARCH model for the return series of the US listed pension real estate REITs provides a strong testimony to this paper.However,due to cross-country website,the core data and the material of the US pension real estate REITs cannot be accessed,which has hindered the study of this paper.