Research On Portfolio Strategy Of Real Estate Investment Trusts Based On Ten Cities Of China

Real estate investment trusts as China real estate finance last piece of lost territory, and behind it is $1.8 trillion in global market, in essence is the securitization of real estate assets. China’s version of the REITs is still in its infancy, government level of attention, support and listed companies’ test, REITs will usher a period of rapid development in China. How to configure the various regions, the proportion of property assets and the length of the holding period of REITs, making the portfolio of assets to achieve optimal risk optimization, will become the primary concern of the fund holders and investors.This paper will combine the modern portfolio theory and China’s real estate market situation, firstly using the BJS model to test the effectiveness of China’s real estate market CAPM, determining the CAPM is applicable to the premise of the real estate market in our country, using the methods of regression were calculated single asset beta coefficient. Secondly, there are four investment strategies(sometimes due to the limited capital and other objective conditions, we can not be fully dispersed): the format based on different regions, the regions portfolio based on different formats, different regions and formats, different holding period. Finally, this paper uses the portfolio model of REITs in the proportion of investment in the investment area, the type of property and the holding time for quantitative analysis, it is concluded that in order to ensure a certain rate of return dispersed non-system risk of different asset allocation proportion.The main conclusions of this paper obtained from the empirical results are : the CAPM mode is applicable to China’s real estate market. Compared to the equal weight portfolio, the investment portfolio strategies proposed in this paper has a significant effect on improving the yield and reducing the risk. Among them, the format combination strategy is the most significant in improving the income, and the risk of dispersion. and the combination of the investment portfolio should be combined with its own advantages. Choosing portfolio strategy should combine with own advantages. Fanatical of relative, lag of China’s relevant policies, the gaps in the regulatory mechanism, the absence of laws and regulations form a huge contrast. This paper suggests our country formulate relevant laws and regulations as soon as possible, at the same times making the relevant subjects’ legal status, rights and obligations clear, and regulating their behavior, to promote the healthy development of REITs in our country by means of tax preference and so on.