Research On Risk Management Of Infrastructure REITs Financing Model In China

The 14 th five-year plan incorporated REITs(real estate investment trusts)in infrastructure as an effective policy tool,in order to revitalize stock assets and broaden financing channels.However,it also has its own risk due to complex operation structure and high degree of market-oriented,as a new financing model.Therefore,this paper studied the risk of infrastructure REITs model.The purpose of this paper is to construct risk index system,evaluate risk level,and control key risks.Furthermore,this paper provides guidance for financing practice and reference for subsequent research.Firstly,this paper used the literature method,risk checklist method and questionnaire survey method to identify the risk of infrastructure REITs model.Furthermore,the risk index system was constructed.This paper found that infrastructure REITs model include 28 risk factors,such as cash flow forecast and valuation risk,fund manager professional risk,interest rate risk et al.These risk factors can be divided into economic and market risk,political and legal risk,credit risk,infrastructure projects risk and public offering funds risk.The result show that the risk of infrastructure REITs model has the characteristics of universality,uniqueness and complexity.Secondly,this paper proposed the CRITIC-cloud model method and evaluating the risk level of infrastructure REITs model by similarity.This paper found that the risk level is at a low to medium.Among the first-level indicators,the economic and market risk is the largest,and among the second-level indicators,the risk of insufficient operating income is greater.The result show that the infrastructure REITs model has great applicability which can increase the promotion and pilot scope,but some risk should be controlled.In addition,the empirical analysis also demonstrated the applicability of the risk index system and the feasibility of applying the CRITIC-cloud model method in the risk evaluate of infrastructure REITs model.Finally,this paper introduced the SNA(Social Network Analysis)method to risk response.This paper used the centrality index to identify key risk and used network density to test the control effect.This paper found that the risk network density of infrastructure REITs model is 0.1892,and the network standard deviation is 0.3916.In addition,this paper found 12 key risk factors,such as the risk of insufficient operating income.The risk network density decreased by 34% after formulating coping strategies.The result show that the risk network of infrastructure RETIs model is relatively dispersed and the risk transmission efficiency is low,which indirectly demonstrates the risk evaluate result.In addition,the overall risk is effectively controlled,after controlling the key risk.The result demonstrated the accuracy of the key risk identification result,and the feasibility of applying SNA method in the risk response of infrastructure REITs model.