Study on the Impact of Stock Market Performance on REITs Market in China

Abstract

China's real estate trust business started in 2002, and has experienced four stages: germination, stagnation, pilot operation and practical development. In the financial market, the stock market will directly reflect the macroeconomic factors represented by monetary policy, external financial market, interest rate and exchange rate, and have an impact on REITs through the secondary market. With the development of China's domestic REITs market, to evaluate the risk impact of the REITs market more accurately and form a stable risk early warning and prevention mechanism is quite important. This paper expounds the basic connotation and main characteristics of real estate investment trust, through the TVP-VAR model, analysis of the mainland REITs influenced by the stock market, it is concluded that the domestic stock market responds directly to the domestic and international monetary policy, and through the stock market to REITs market, and the effect time is mainly short-term, but the impact effect is more obvious. Basic connotations and main characteristics of REITs Basic connotation of the REITsFinancial Engineering and Risk Management (2023) Clausius Scientific Press, Canada