The first batch of 9 infrastructure public offering REITs projects have been reviewed and passed——

Revitalize real estate and add another weapon

　　Our reporter Ma Chunyang Zhou Lin

　　As an important step in the implementation of "no real estate speculation" and promotion of real estate asset securitization, the first batch of domestic infrastructure public offering REITs projects passed the review-May 14th, the first batch of 9 infrastructure REITs projects were reviewed by the Shanghai and Shenzhen Stock Exchanges The approval, including 5 on the Shanghai Stock Exchange and 4 on the Shenzhen Stock Exchange, marks another important step forward in the pilot of the Shanghai and Shenzhen Stock Exchange's infrastructure public offering REITs.

　　The full name of REITs is "real estate investment trust funds", which refer to standardized financial products that are publicly traded on stock exchanges and convert real estate assets or equity with continuous and stable income into listed securities with strong liquidity through securitization.

Its essence is the securitization of real estate, which can be widely understood as the asset management agency, through a series of product designs, "cut" the poorly liquid house into several securitized products for sale and purchase, so as to provide a way for the supply and demand of funds to allocate funds. .

As a type of investment with relatively moderate returns and risks, the emergence of publicly offered REITs is expected to expand the way of social capital investment, make "bulky" real estate "light", enrich residents' wealth management "basket", and revitalize the entire real estate market.

　　Promote the formation of a benign closed loop of infrastructure investment

　　Currently, REITs markets have been established in many countries around the world.

The origin of REITs in my country can be traced back to the beginning of the 21st century, but it was not until 2014 that the quasi-REITs represented by the "CITIC Qihang Special Asset Management Plan" officially started.

The so-called "class" means that compared with real REITs, the system design is not perfect, and there are certain differences in product structure.

　　In recent years, as my country’s legal framework, regulatory environment, and market conditions have matured, plus previous practical experience in similar REITs, a series of policies and systems were introduced last year, providing important support for the launch of infrastructure publicly offered REITs products.

　　"The implementation of pilot infrastructure public offering REITs will help deepen the reform of the financial supply side, further enhance the capital market's ability to serve the real economy, increase the proportion of equity financing, and broaden social capital investment channels." Greater Bay Area Infrastructure REITs held on February 25 At the development forum, Li Chao, vice chairman of the China Securities Regulatory Commission, expressed the hope that all parties could reach consensus and form a joint effort to jointly advance the pilot work, sum up experience in a timely manner, improve the legal system supply and related institutional arrangements, and promote the institutionalized and standardized development of the REITs market.

　　Wang Gang, secretary-general of the China REITs Alliance, said that from a corporate perspective, the implementation of public REITs pilots can help revitalize existing infrastructure assets, raise equity funds from the society, and use them to make up for shortcomings and new project investments, and cultivate a new high-quality foundation. Infrastructure assets, and injected into REITs when conditions are ripe, thereby forming a benign closed loop of infrastructure investment; from the perspective of investors, the entry of mature infrastructure assets into the capital market will help provide both long-term allocation and stable dividends Financial product.

　　"From the perspective of the characteristics of infrastructure REITs products, because they can naturally solve some inherent contradictions in the market, they will be very attractive to both investment and financing parties. The emergence of publicly offered REITs is the choice of the times, which is conducive to enriching my country’s capital market products and realizing The exploration and innovation of financial products will improve the effectiveness of financial service entities and help the transformation and upgrading of China's economy." Wang Gang believes.

　　Extensive product categories have been approved

　　On April 21, after the Shanghai and Shenzhen Stock Exchange announced the acceptance of 4 applications for infrastructure public offering REITs, on April 28, another 6 public offering REITs were reported. So far, the total number of publicly offered REITs has reached 10 projects.

On May 14, nine of the infrastructure public offering REITs projects were approved by the Shanghai and Shenzhen Stock Exchanges.

　　The reporter found that the 9 products that have been approved are relatively rich in types, involving highways, warehousing and logistics, industrial parks, water affairs and other fields. The project shareholders are mostly large central enterprises, state-owned enterprises or large-scale leading private enterprises, and most of the projects are located in National key strategic development area.

　　The relevant person in charge of the AVIC Fund’s public offering REITs business stated that the first batch of 4 projects declared on April 21 has two types of business types: franchise rights and park property rights. The franchise income is relatively stable, and the asset value of property rights projects has appreciated. There is more room for imagination. The above-mentioned projects all meet the standards and requirements of the National Development and Reform Commission and the China Securities Regulatory Commission on underlying assets.

In addition, the 10 projects that have been reported are very representative in terms of underlying asset quality, business distribution and regional distribution. The asset quality is excellent and the cash flow is stable. Compared with the standards specified in the document, it has higher requirements. The best choice.

　　Xinhua Fund sorted out the first batch of 4 projects and found that there are three major characteristics. The first is that the project shareholders have a prominent background, all of which are large-scale central enterprises or local state-owned enterprises; the second is that the quality of the projects is good, and the profitability of the first batch of projects is stable; the third is that In order to support the successful issuance of the project, the original stakeholder subscribed for the first batch of projects substantially exceeded the prescribed 20%.

　　The Shanghai Stock Exchange said that under the guidance and deployment of the China Securities Regulatory Commission, after the relevant infrastructure public offering REITs project obtains the CSRC fund registration approval, in accordance with the relevant procedures and requirements for the public offering of securities, it will promote the market to continue to do the first batch of infrastructure public offering REITs. Inquiry, sale, listing and trading, etc., will form market scale and market synergy as soon as possible, and create a good demonstration effect for the first batch of pilots.

　　Market opportunities and risks coexist

　　"It is foreseeable that on the basis of the pilot public offering of REITs, the scope and area of ​​the pilot for such products will gradually expand, and the issuance of public offerings of REITs may gradually become normal." Wang Gang believes that with the future legal framework and taxation policies for public offerings of REITs in China Gradually perfected, REITs have the characteristics of high transparency of underlying assets and stable dividend income, which will make them an important choice for investors in asset allocation.

　　In the future, the development of domestic REITs may face some risks and challenges.

Tianfeng Securities analyst Guo Lili believes that, first of all, the price of REITs may be affected by interest rate fluctuations, which is reflected in many aspects such as securities pricing, financial pressure and profitability.

In addition, the profitability and value of REITs may also be affected by market supply and demand.

　　Secondly, in terms of taxation, the current tax provisions for REITs have not been promulgated, which may bring uncertainty to the investment income of such wealth management products.

If REITs enter the real estate industry in the future, they may face policy impacts involving the traditional real estate industry.

　　Third, in terms of financial risks, the potential risks of the property rights of REITs’ underlying assets include legal flaws and disputes in the creation of the property rights of the assets and the ownership of the land to which they belong. If REITs do not have sufficient funds to ensure business operations, it may lead to property depreciation or Stalled.

There may also be situations where the lessee refuses to perform the lease or defaults on rents, the market price of rents drops sharply, or other factors cause the property assets to fail to operate normally, which may adversely affect the cash flow of the infrastructure.

　　Public REITs may also face market volatility in the initial stage of issuance.

Zhang Bingwen, an analyst at Zhixin Investment Research Institute, believes that in the initial stage of public offering of REITs, there may be two situations: First, similar to the "hot" of IPO listings of some stocks, REITs have continuous daily limit.

Second, it may also be cold, and similar public fund products have experienced substantial price fluctuations after being listed and traded.

In short, publicly offered REITs are investment opportunities worthy of attention for investors, but they must comprehensively consider their own risk tolerance and participate cautiously.

　　Lin Caiyi, deputy dean of the China Chief Economist Forum Research Institute, believes that the scale of China's infrastructure stock may exceed 100 trillion yuan. Based on the asset securitization rate of 1%, the potential market size of infrastructure REITs exceeds 1 trillion yuan. With the first batch of infrastructure public offering REITs projects approved by the Shanghai and Shenzhen Stock Exchanges, in the future, this new trillion-scale investment and financing market will be activated, which is of great significance to the construction of China's capital market and guiding equity investment in the infrastructure sector .