Operation Mode And Existing Defects Of REITs In China

China’s housing prices have continued to rise in recent years,and more and more young people are facing difficulties in buying houses.The country has introduced many policies on real estate regulation,including property rights registration,rent-and-purchase,renting and selling,and other policies..The state has called for the cultivation of institutionalized and large-scale rental housing enterprises to support the construction of long-term rental apartments.However,the development of institutionalized and large-scale rental housing enterprises requires a large amount of funds,and the traditional banks are banned after the introduction of new regulations.The wealth management funds entered the real estate industry through non-standard debts,and traditional financing channels such as loan placement were further hindered.How to develop new financing channels for real estate enterprises under the current tightening of funds,and no longer increase the debt ratio of real estate enterprises with high asset-liability ratios,many real estate companies will choose the tool of asset securitization.Financing.However,asset securitization usually adopts a single SPV model,which is less effective than the dual SPV bankruptcy isolation,and its main performance is the characteristics of its financing,and its investment properties are basically not.REITs,a relatively mature tool in overseas markets,are used in the domestic real estate market.On the one hand,they can play a better role in financing.After the development is mature,their investment attributes are also very attractive.This paper selects the domestic REITs issued by the first single storage rack for analysis.The main reason for choosing Poly is that Poly REITs are the first REITs issued by domestic SOEs with their own property asset storage shelves,mainly for the current REITs market in China.Some questions are analyzed.This includes an analysis of some of the common issues with the distribution of Poly REITs and most other REITs,as well as some of the features of the Poly REITs release.The analysis of the characteristics of Poly REITs is mainly based on property asset analysis and cash flow forecast analysis.It is concluded in the analysis of property assets and cash flow forecast that the source of cash flow should mainly come from the rental income of property assets and the distribution of property assets.Extensive and a wide variety of property assets help to ensure interest coverage on cash flow for priority asset-backed securities.Corresponding countermeasures are proposed for the current problems of REITs distribution.It is necessary to clarify that REITs not only have financing functions but also investment functions.REITs are the fourth largest investment tool in the US market,encouraging REITs to be publicly offered and emphasizing their investment attributes.Compared with China’s REITs market and the US REITs market,China’s REITs market capacity is estimated.From the current REITs circulation in China,there is still a lot of room for the measured REITs market capacity.Using the tools of REITs can not only solve the problem of financing difficulties for real estate companies in China,but also release the funds deposited in real estate.At the same time,it also provides another investment choice for Chinese investors to broaden the depth of China’s financial market.