Study On Yield-affecting Factors Of China's Real Estate Investment Trusts

The real estate industry occupies an important position in China's economic development,it is one of China's pillar industries.The Housing system of Rent and purchase ",in late 2017,commercial banks and trust companies were required not to illegally invest trust funds in real estate and other fields.In 2018,the Political Bureau of the Central Committee proposed to resolutely curb housing price increases,accelerate the establishment of a long-term mechanism,and promote the stable and healthy development of the real estate market.The current real estate market is undergoing transformation under the strict control of multiple policies.With the development and transformation of China's real estate industry,the development of REITs in the mainland real estate investment trusts has become an inevitable trend.The development of real estate investment trusts is crucial to the development of real estate and financial markets.It can provide the government with a tax base,revitalize existing stocks,expand the financing channels of real estate companies,and create investment opportunities for investors.The REITs market in Hong Kong has been developing since 2005.At present,the REITs market environment in Hong Kong is relatively mature.Some mainland real estate projects choose to be listed and financed in Hong Kong in the form of REITs.However,compared with the in-depth study of REITs abroad,the content of REITs in China is less and less relevant.Based on the above background,this paper studies the current status and development of REITs,theoretically analyzes the influencing factors of REITs income,and uses Hong Kong REITs data to carry on empirical analysis with Fama-French three-factor model.Finally,combined with the empirical results and the actual environment of our country,This paper propose policy recommendations for the development of China's REITs.First of all,this paper introduces the basic concepts of REITs and the development status at home and abroad,introduces the experience of mature markets in developed countries and regions such as the United States and Hong Kong,and provides experience for the development of China's REITs market.Then introduce the development of China's current REITs,and propose that there is no current status of standardized REITs in China and the current obstacles to the development of REITs.Secondly,this paper will analyze the factors that influence the revenue of REITs into macro market factors,REITs related market factors and asset pricing factors.Due to the immature development of REITs in China's domestic market and the lack of relevant data,this paper selects the 2008-2017 Hong Kong REITs data for empirical analysis.Firstly,from the macroscopic point of view,the impact of market interest rate,inflation rate and money supply on the income of REITs is analyzed.It is found that market interest rate and money supply can affect the income of REITs,and inflation rate has little effect on REITs income changes.From the relevant market perspective,the impact of stock market,real estate market and bond market on the income of REITs is analyzed.The results show that they can significantly affect the profit rate of REITs.The development of capital market and real estate market has great influence on the development of REITs.Finally,from asset pricing From the perspective of Fama-Fama-French three-factor model,the effects of market excess returns,scale factors and book value-to-market ratio factors on REITs' yields are studied.The results show that the three-factor model is applicable to REITs yield analysis,and all three factors are for REITs yield.Has a significant impact.Based on the above conclusions,this paper proposes the implications of the Hong Kong REITs market for the development of REITs in the Mainland,and draws on the experience of Hong Kong to seek legal and regulatory support and financial market support.Finally,in view of the lack of relevant laws and regulations on the development of REITs in China,the lack of industrial and market development,and double taxation,this paper proposes policies and recommendations for the development of REITs in the Mainland.Call for improvement of laws and regulations,adopting temporary regulations and pilot measures;ensuring the healthy development of the capital market,designing the REITs supporting trading system and investor education;formulating sound tax policies to avoid double taxation hindering the development of REITs;improving the quality of basic property Investor investment;combined with public rental housing and infrastructure construction to promote the common development of policies and REITs.I hope that these suggestions can give some inspiration and reflection to relevant departments,real estate companies and investors.The innovation of this paper is that it enriches the previous few quantitative studies of REITs.This paper adopts the Hong Kong market data which is closely related to the inland market and the financial market,and selects the latest data of Hong Kong REITs to ensure the timeliness.In this paper,the Fama-French three-factor model is used to provide a theoretical basis for the evaluation of REITs'income.The multi-angle data is selected without limiting the single influencing factors or a certain angle for empirical testing.At the same time,this paper also combines the actual situation of the development of REITs in China to give reasonable policy recommendations.