Analysis Of The Factors Affecting Real Estate Investment Trusts (REITs)

Real estate investment trusts(REITs)are developing rapidly in the US,Europe and Asia,and there are no standardized REITs in the Chinese market.In recent years,with the development of the capital market,the government has repeatedly issued documents to actively promote REITs products.Therefore,through the analysis of the influencing factors of REITs,this paper enables investors to further understand the benefits and risks of standardized REITs products,thus facilitating the vigorous implementation of REITs.This paper first briefly describes the characteristics of real estate trust investment funds,and at the same time sorts out the domestic and foreign research literature on the influencing factors of real estate trust investment funds,analyzes the main influencing factors of REITs,and points out the necessity of analyzing the influencing factors before China develops real estate investment trust funds..In this paper,the vector autoregressive model(VAR model)is used to empirically test the main influencing factors of REITs to demonstrate the feasibility of REITs products.REITs listed in Hong Kong and whose underlying assets are from mainland China's property assets are selected as the main research objects.The real estate industry and the securities market are analyzed at three levels.After the data's stationarity and cointegration test,the influence of various related influencing factors on REITs was analyzed by establishing VAR model and using impulse response and variance decomposition methods.The results of this paper show that the influencing factors of macroeconomic changes have little impact on REITs,while the influencing factors from real estate industry and securities market have a greater impact on REITs.This fully demonstrates that REITs have the dual characteristics of the real economy and the capital market.At the same time,because REITs are not affected by inflation in the macro economy,they have better anti-inflation and preservation features,and are an investment with stable income and long-term investment value.In the process of expanding the capital market,it is feasible to vigorously promote REITs for the stability of the real estate market.