Study Of Application Of Suning REITs In Asset-Light Transformation

In China,the development of the retail industry in the past decades has started from scratch,and made a great contribution to the development of the national economy.However,the development model of traditional physical retail enterprises in China is facing challenges at present.The growth rate of retail industry is slowing,and the competition in the industry is increasing fiercely.At the same time,a large number of store assets accumulated during the development process of physical retailers,which takes up the capital of enterprises,also hinders the development of retailers.In recent years,the rapid development of e-commerce has also caused a huge impact on traditional retailers,coupled with the general problems in the financing of retailers,retailers’ financial stability and liquidity are affected.Traditional retailers are in urgent need of business model transformation.The asset-light transformation has become an inevitable choice for many enterprises,which make a higher requirement for cash flow.In this background,the use of real estate investment trusts(REITs),a new type of financing tools,has been put on the agenda.As a new financing tool in financial market,real estate investment trusts(REITs),has become one of the most popular financing mode.REITs can ease the financing difficulties of enterprises,revitalize the enterprise assets,reduce financing risk,promote the Asset-light transformation of enterprise,and find a new investment way for small and medium investors in China,which will promote the stable development of financial market and capital market.However,as an emerging thing in China’s financial market,compared with developed countries,REITs is relatively backward in our country.So we should take full account of national conditions in the use of REITs.Therefore,it is of great significance to study the application of REITs in asset-light transformation.This paper adopts the method of case study.First of all,combing the theoretical basis and research findings of the real estate trust fund and asset-light model.And then analyze the development of retail industry in China.Select case of Su ning yun REITs,study the whole process of REITs and risk prevention measures,and the results after the implementation.Find that the implementation of REITs can help enterprises to change the operation mode of asset-light.REITs is a mode of capital operation which can be chosen for enterprises who has a large number of high-quality stores and property assets.This paper can be used as reference and demonstration for retailers who need asset-light operation mode transformation.