Research On The Risk Of Real Estate Investment Trust Funds

Real estate investment trusts(REITs)began in the United States in the 1960s.It has a history of more than 50 years of development.As a financial innovation product,it has brought new financing channels to the real estate industry,and provided small and medium-sized investors with channels for participating in real estate investment and then gain stable return on investment.It can be said that REITs have been widely welcomed by the world.The rapid development of China's economy is inseparable from the rapid development of real estate.But the real estate industry faces further policy control,bank loan financing difficulty upgrade,the real estate industry urgently needs new financing channels.As a new financing means,REITs are also exploring and developing in China.At present,there are two main methods in China.First,the mainland real estate project is an investment property,seeking to list on the overseas REITs market.After collecting and analyzing,Until the first half of 2018,a total of 15 overseas listed REITs held mainland property,including 5 in Hong Kong and 10 in Singapore;Second,the issue“class-like REITs".Until the first half of 2018,There are 34“class-like REITs",The types of properties include office buildings,retail,apartments,industrial logistics,etc.And it step by step closes to international standard REITs.Therefore,with the development of the domestic REITs market,and in order to promote the introduction of domestic standard REITs,it is necessary to conduct a more complete analysis of the risks of REITs.This paper mainly studies the risks of REITs.First of all,through the literature analysis method,theoretical analysis method,data collection and analysis method and other methods,the definition,classification,characteristics,development significance and global development of REITs are analyzed in detail.It focuses on Development status of REITs holding mainland properties and Domestic'"class-like REITs?".Then through empirical analysis,the system risk risk faced in the development of REITs is analyzed.The linkage relationship between different REITs and the securities market is also analyzed according to the type of property.The research targets are 15 overseas listed REITs holding property in mainland China.Finally,it is concluded from the empirical that REITs have the dual attributes of real estate and securities,so their risks are diverse and complex,systemic risks cannot be avoided,and different ownership of properties will affect their risk.Finally,some suggestions about the development of REITs in China are put forward according to the research results.