Income And Risk Analysis Of REIT Of Huaxia China Communications Construction Expressway

China’s infrastructure construction has always faced problems such as large capital scale,poor financing channels,and difficulties in capital withdrawal.The emergence of infrastructure REITs has pointed out a new direction to solve these problems.Our government and relevant institutions have also continuously introduced various policy measures to improve the market operating conditions of infrastructure REITs,providing assistance for the development of infrastructure REITs.However,at present,the number of infrastructure REITs products in China is relatively small,and most research focuses on the design of infrastructure REITs products.In order to gain a deeper understanding of the market environment of infrastructure REITs in China,it is necessary to analyze the benefits and risks of infrastructure REITs.This article selects Huaxia China Communications Construction Expressway REIT as the research object,and summarizes the relevant concepts of infrastructure REITs and the theoretical methods required in this article.Firstly,the basic situation of China’s infrastructure REITs product market was analyzed.Then,taking Huaxia China Communications Construction REIT product as an example,the product issuance situation,yield situation,and risk situation were sorted out.Then,in the empirical research of case product returns and risks,the GARCH model was used to estimate the price volatility of the underlying asset,and Monte Carlo simulation was used to simulate the price path of the asset,The possible distribution of expected returns that can be achieved.In the qualitative and quantitative analysis of the risks faced by Huaxia China Communications Construction REIT,qualitative analysis was conducted on the risks faced by the product.Single factor sensitivity analysis was used,and Va R values were calculated to measure the main market risks faced by the case product.Based on the comprehensive analysis and conclusions on the benefits and risks of infrastructure REITs in China,suggestions are proposed from multiple aspects to address the issues related to the benefits and risks of infrastructure REITs in China.It is hoped that this can provide reference for the long-term healthy development of infrastructure REITs in China.The empirical results show that the probability of the market premium rate of Huaxia China Communications Construction REIT exceeding the officially announced return rate is relatively low,but the total return rate is composed of market premium rate and cash dividend rate.Considering the low cash dividend rate of Huaxia China Communications Construction REIT,its total return rate is still at a low level among all infrastructure REITs,mainly due to the high pricing of the fund and the high cost of holding the fund,The total return rate is relatively low.Evaluate the risk status of Huaxia China Communications Construction REIT through the calculated Va R value.Among all infrastructure REITs,Huaxia China Communications Construction REIT has the highest Va R value,which means the possibility of daily price loss is the highest,and its risk level is the highest.The analysis of comprehensive income and risk shows that the premium rate of Huaxia China Communications Construction REIT fund is relatively high,and the cash dividend cannot meet the expected return level of investors.Investors’ enthusiasm for buying Huaxia China Communications Construction REIT in the market decreases,and the possibility and degree of price decline will increase.Therefore,the risk of Huaxia China Communications Construction REIT is at a relatively high level.To address the issue of low return and high risk in Huaxia China Communications Construction REIT,efforts can be made to increase returns by increasing underlying asset income and reducing fund holding costs.For issues with high risk,market circulation share can be increased to enhance liquidity.