Analysis of the Impact of Real Estate ESG Performance on Stock Trust Investment Strategies

Abstract

In the context of carbon neutrality initiatives and green finance regulations, the ESG profiles of real estate firms now play a critical role in guiding capital market investment choices. To elucidate this dynamic, an empirical framework is applied to a dataset comprising A-share listed real estate companies in China and stock trust records between 2018 and 2024. The primary objective is to uncover the mechanisms through which ESG quality dictates the asset allocation behaviors of stock trusts. The study finds that: first, the ESG performance of real estate enterprises is positively correlated with the probability of being selected as a stock trust target; second, the allocation weight of real estate enterprises with high ESG ratings in trust portfolios is higher than that of enterprises with low ratings. The conclusions confirm that, in the current context, the ESG performance of real estate enterprises has become a key factor for stock trusts to prevent risks and optimize strategies. It provides theoretical support for the capital market to improve the green investment system and offers a decision-making reference for the sustainable development of real estate enterprises during their green transformation.