Risk Studies Of Infrastructure REITs

The supply of funds is extremely important for the development of infrastructure,and government investment alone or alone is difficult to support,so it is imperative to promote infrastructure REITs(real estate trust investment funds).On June 21,2021,China’s first batch of infrastructure REITs products were publicly listed,which is a new financial product for China,so the risk research of infrastructure REITs has high value,on the one hand,it can provide reference for investors’ decision-making,on the other hand,it is also conducive to improving the supervision of financial risks in China.The research on risk in this paper is mainly divided into two aspects,one is to identify the risk of infrastructure REITs,and the other is to establish a model that can measure the market risk of infrastructure REITs.The infrastructure REITs are first outlined,including their definitions,characteristics,classifications,and transaction structures.Then,the development status of domestic and foreign infrastructure REITs is introduced,and the problems existing in domestic development infrastructure REITs are analyzed.After that,the focus is on the analysis of the risks of infrastructure REITs,and the risk factors are analyzed in depth with the case of Zhongjin Pros REIT.Based on the qualitative analysis of risk factors,based on the Va R model,this paper uses four different methods to measure the market risk of infrastructure REITs products,and selects the most effective method.The study found that:(1)The risk factors of infrastructure REITs are mainly divided into market risks and non-market risks.Market risks include: macroeconomic environment risks,policy and regulation risks and industry competition risks;non-market risks include: project site selection risks,operational risks and management risks.In the future,institutions can examine the project based on these risk factors before issuing infrastructure REITs,or before investors make investments.(2)The GARCH-Va R model can accurately measure the market risk of infrastructure REITs and provide a reference for investors’ decision-making.It also contributes to the risk management of regulatory authorities.Based on the conclusions of the study,the proposed recommendations are finally made against the risk factors.