Research On Yield-affecting Factors Of China’s Real Estate Investment Trusts

In recent years,due to the macro-control of the real estate industry by the government,the tightening of real estate credit by Banks,and the reform of shadow banking by China banking insurance regulatory commission,the real estate industry has faced huge capital demand problems.In addition,as a great investible commodity,real estate has been increasing the demand of residents for investment in the real estate industry.However,the high price of real estate makes it difficult for ordinary investors to directly invest in real estate,enjoy the dividends brought by the appreciation of real estate and obtain stable cash flow.At the same time,in recent years,the government has introduced a series of policies to restrict the purchase of real estate,making it more difficult for ordinary investors to invest in the real estate industry.The emergence of real estate investment trusts effectively balances the relationship between investors and real estate enterprises.Therefore,this paper has important theoretical and practical significance to the research of real estate investment trust and the factors influencing the investment return rate.Taking the listed real estate investment trust fund as the research object,this paper analyzes the influence of interest rate factors,money supply,output level,stock market fluctuations,bond market fluctuations and real estate sector fluctuations on the yield of real estate investment trust fund.The empirical part of this paper selects the monthly data from January 2010 to December 2019,establishes the vector autoregressive model,and conducts an empirical test on the factors affecting the return rate of REITs through the impulse response function,variance decomposition and granger causality test.The empirical analysis shows that the stock market fluctuations and the real estate sector fluctuations are positively correlated with the real estate investment trust fund return rate changes,while the interest rate changes are negatively correlated with the real estate investment return rate changes.In the long run,real estate investment trusts themselves,interest rate changes and money supply have a large impact on the yield of real estate investment trusts,while the output level,stock market and bond market fluctuations in the real estate sector have a small impact on the yield of real estate investment trusts.According to the research results,this paper puts forward the following four policy Suggestions :(1)improve the laws and regulations related to REITs,and improve the tax system related to REITs.(2)guide the healthy development of the financial market and build a reasonable and effective capital market.(3)simplify the listing process of RIETs and promote the listing of REITs as soon as possible.(4)establish a professional talent training mechanism and train a professional REITs investment team.