Research On The Application Of Ecological And Environmental Infrastructure Public Offering REITs

The report of the 20th National Congress of the Communist Party of China pointed out that building a beautiful China not only requires promoting ecological priority and green low-carbon development methods,but also needs to improve the level of ecological and environmental infrastructure construction.Ecological environment infrastructure refers to the infrastructure that protects the urban ecological environment,including ecological environment infrastructure such as household waste incineration,urban sewage treatment,and solid waste and hazardous waste treatment.It is a weak link in China’s green development.As an emerging investment and financing model in China’s financial market,infrastructure public REITs not only help stabilize economic growth,but also revitalize existing infrastructure assets and reduce leverage ratio.The AVIC Shougang Biomass Closed Infrastructure Securities Investment Fund(referred to as "AVIC Shougang Biomass Closed REIT"),as one of the first public REITs products in China,has successfully gone public.Its successful listing not only enriches the practical experience of China’s public REITs business in infrastructure,but also provides a new path for the investment and financing exit channels of ecological environment infrastructure.As an emerging investment and financing product in the capital market,public REITs can solve the problems of insufficient financing funds,high leverage level,and single capital exit channels faced by existing financing models for ecological and environmental infrastructure.This article studies the financing models of public REITs in response to these issues.This article selects AVIC Shougang Biomass Closed REIT products from the first batch of 9 infrastructure public REITs as the research object.Firstly,starting from the problems faced by the existing financing models of ecological and environmental infrastructure,the feasibility and necessity of applying public REITs in the field of ecological environment were analyzed.Secondly,the rationality of the issuance plan for AVIC Shougang Biomass Closed REIT was discussed.The public REITs model solved the problems of high leverage and single capital exit channels in the original financing model for ecological and environmental infrastructure.Once again,based on signal transmission theory,does the company’s use of public REITs financing mode have an impact on the company’s listing platform? This article uses event analysis to analyze the impact of the issuance of AVIC Shougang Biomass Closed REIT on the company’s listing platform.Finally,relevant suggestions were put forward to address the shortcomings of AVIC Shougang Biomass Closed REIT products and the problems in the Chinese infrastructure public REITs market.The research conclusions of this article are as follows: Firstly,public REITs provide new financing channels for ecological infrastructure,reducing the asset liability ratio of the original equity holders of the infrastructure,and the company’s adoption of public REITs financing mode will not have a negative impact on the stock price of the company’s listing platform;Secondly,in the context of imperfect policies related to REITs in China,public REITs can save issuance costs through tax planning;Thirdly,public REITs provide investors with inclusive financial products.Based on the above research conclusions and the current development status of China’s public REITs market,this article proposes relevant suggestions from two levels: coordination mechanisms and public REITs policies.