Research On The Risk Management Of The Real Estate Investment Fund

With the rapid economic development, real estate industry has become China’sbasic industries, and has become the dominant economic sector. In recent years, realestate has become a new growth point of China’s national economy, the real estateindustry as a pillar industry of China in promoting national economic developmenthas played a pivotal role, is the country’s economic development thermometer. Tosome extent,China’s economy the healthy and rapid development is depended on thehealthy development of the real estate industry. The rapid development of the realestate industry also led to the development of downstream industries such asconsumer durables, building materials and other consumer, to promote the activeconsumer market, and even the overall economic growth. Real estate is a typicalmoney-driven industry. Since2003,the tightening trend of bank loans for real estatecompanies has emerged. In recent years the state has continuously raised throughmacro-control lending rates, the rising cost of real estate financing. On the otherhand, a large number of domestic private capital, but the lack of reasonableinvestment channels, so many small investors can not invest capital into the realestate industry, real estate industry can not share the benefits of rapid development.Well as an effective tool to resolve these contradictions, REITs will be launched inChina and REITs will be the major driving force of perfecting capital market andpromoting the healthy development. To the real estate industry and investors insignificant benefits at the same time, real estate investment trusts of the potentialrisks can not be ignored. How to analyse and manage the risk of REITs effectively,for promoting the healthy development of China REITs has important theoreticaland practical significance.In the new century, as China’s financial markets continue to improve anddevelop their professional financial securities investment fund advantage, securityinvestment fund has become the most influential institutional investors. In recentyears,risk Management of the Fund has become China’s financial theory in thestudy of one of the hot issues, especially the risk of open-end fund research. Thisarticle draw lessons from open-end fund risk measurement methods and use VaRmethods to measure real estate investment trust market risk. Also this articleelaborates a series of real estate investment trust risk factors, including interest raterisk, market risk, legal risk, operational risk and financial risk. Finally，this paper propose the suggestion that include perfecting risk release mechanism in REITs，perfecting policy environment and financial market system.