Research On REITs And Enterprise Financing Innovations

At present,China’s economy has entered a new normal.The central authority has put forth supply-side reforms in due course which emphasized exercising more market-oriented measures and implementing the principle of "three cuts,one reduction and one fill-up"and promoting economic restructuring based on the innovation-driven development model.Under such circumstance,the traditional enterprises with quite large amount of real estate precipitation in the composition of assets have creatively used REITs(the Real Estate Investment Trust Funds)that has developed quite well in other countries,especially in real estate enterprises,to finance,according to their asset’s characteristics.For non-real estate developers,especially for some traditional state-owned enterprises,how to effectively use REITs for innovative financing,how to develop Chinese-style REITs is very worthy of study and research.In addition to real estate developers,how to effectively use REITs for innovative financing for other enterprises,especially for some state-owned enterprises,is an issue worth exploring.At a macro level,REITs are conducive to the implementation of reforms in the supply side of financial services and can supplement capital market instruments.From the industry perspective,REITs are conducive to the industry’s financial innovation,industry-financial integration and asset allocation efficiency,as well as promote the industry in healthy competition.From the perspective of investment and financing,REITs can meet the needs of small and medium investors by gathering their idle funds.Corresponding to the financing side,REITs can activate the enterprise stock assets,make the source of funds more diversified,and at the same time,there is no proportion or restriction on the funds raised by the financing method,which provides financial support for the diversified development of enterprises.Therefore,the research in this article has some significance.In this paper,literature research,case analysis and comparative analysis of REITs financing innovation are used to do the research.First of all,this paper uses the method of literature research,sorts out the relevant literature to form the literature review and theoretical basis.Secondly,this paper introduces the development history,status and operation mode of REITs in the United States,Japan and Hong Kong respectively,and compares the REITs in these three markets from three aspects:establishment condition,operation structure and supervision system,then gets the experience enlightenment from developing REITs in our country;Thirdly,this paper introduces the development history and status of REITs in our country,compares them with the foreign mainstream REITs,and discovers the obstacles to the development of REITs in China.After that,this article analyzes the application of REITs innovative financing in Wanxin Media by using the case study method.After a brief introduction of Wanxin Media and the current situation of its financing,this article analyzes the feasibility of innovative financing of Wanxin Media’s REITs,then analyzes the operation path of Wanxin Media REITs,the financing performance brought by the company and the significance of the issuance,aiming to illustrate the innovativeness of REITs financing.On the basis of the above analysis,this article puts forward some suggestions on how to develop the innovative financing methods of REITs in our country.Finally,this article draws the conclusions of this paper.