Research On The Causes And Economic Consequences Of REITs Financing In Sunshine City

Financing is the most important problem for real estate enterprises,but for a long time,China’s real estate enterprises have a single financing channel,the proportion of bank loans to funds is far higher than international standards and other issues.Compared with other industries,the investment threshold of the real estate industry is relatively high,small and medium-sized investors are difficult to enter,which makes the supply and demand of funds in the field uneven.In recent years,with the call of the state to "deleveraging ",real estate enterprises have also been limited to obtain funds from banks,which has brought potential hidden dangers to China’s financial system.Therefore,the innovation of financing mode of real estate enterprises is urgent.Real estate investment trust fund(Real Estate Investment Trusts,referred to as "REITs""),as a new financing method,can not only activate the stock assets of real estate enterprises,but also reduce the cost of enterprise financing and alleviate the problems caused by the difficulty of financing enterprises.The call to develop a trust fund for real estate investment began in 2002.Beginning in2015,the state has introduced the policy of simultaneous rental and sale,the same right to rent and purchase,vigorously promote the landing of housing reform,financial product innovation and other huge support so that real estate enterprises ushered in an opportunity for development.This article uses literature analysis and case analysis.First of all,combining principal-agent theory,bankruptcy isolation theory and credit enhancement measures theory,starting with the introduction of REITs related concepts,this paper summarizes the current situation of real estate enterprise financing in China.Secondly,introduce the case of Sunshine City application REITs financing.Furthermore,analyze the special plan REITs sunshine city issue.Secondly,the paper analyzes the reasons of financing,introduces the state policy,enterprise management situation,enterprise strategy and so on.Moreover,it analyzes the risk of the project,that is,rent decline,principal bankruptcy,and related parties default andother corresponding measures to provide loans for other real estate enterprises Finally,the economic consequences of financing are analyzed.By studying the current situation of financing of real estate enterprises in China and combining the case of Sunshine City,this paper draws a conclusion:first,with the country vigorously promoting the landing of housing reform,the financial product innovation of housing leasing has promoted the rapid development of REITs.Real estate investment trust fund development prospects are broad,is expected to become an important means of financing the real estate industry.As a high-speed private housing enterprise,Sunshine City is faced with the problems of large capital demand and short-term debt service pressure,and actively adopts the REITs,which is different from the traditional financing channels to some extent,which alleviates the single financing channel of enterprises,the high debt ratio of enterprises and the dependence on banks the dilemma of traditional financing such as loans.In addition,it attracts potential investors,sets up a good market image,and brings vitality to the development of enterprises.A series of high-quality Biyun International long-rented apartments are selected as the underlying assets.Such high-quality apartments are rare in China,and there are some deficiencies in their popularization.However,this special plan is in line with national policies,promotes credit rating from various angles,realizes bankruptcy isolation,and supports professional teams.The "Trust Asset Management Special Plan "," Storage Shelf Distribution" and "Installing Issue" have positive REITs for other real estate enterprises in China significance,for the early arrival of the public offering REITs era played a role in promoting.