Analysis On Financing Effect Of Huaxia China Construction High-speed REITs

As an important force supporting a country’s economic and social development,infrastructure construction can promote the urbanization process and promote coordinated development among regions.Since the reform and opening up,our country has given great support to infrastructure construction and built many important infrastructure such as roads,railways,airports,ports and so on.It has accumulated a large number of stock assets with low liquidity.Therefore,the pilot of public offering REITs in China is timely.As an innovative financing model,REITs connect the real economy with the capital market,truly serve the real economy,convert the huge stock assets into financial assets that can be listed and traded in the capital market,and collect funds from many investors.It not only lowers the threshold for public investors to participate in large-scale infrastructure construction and provides diversified investment strategy choices for investors,but also solves the financing dilemma of enterprises,withdrawing construction funds in advance,improving the utilization efficiency of enterprise funds and forming a virtuous cycle of investment and financing.In this paper,Huaxia China Communications and Construction Express REITs,the first stateowned enterprise in the industry,is selected as the object of analysis.First,the project overview and issuing motivation of Huaxia China Communications and Construction Express REITs are introduced,including the basic information,organizational structure,underlying assets,participants and issuing motivation of the products.Secondly,it analyzes the financing effect of Huaxia China Communications REITs from four aspects: underlying assets,market effect,financial effect and financial risk before and after financing.It uses financial index analysis method,event study method and Z model to compare the data before and after financing,and finally draws the following conclusions: First,the foundation of successful financing of REITs is high-quality underlying assets.The quality of underlying assets has an important impact on the financing effect of REITs,and high-quality underlying assets can improve the credit rating and market reputation of REITs.Second,REITs can improve the liabilities and operation of enterprises.Help enterprises build new projects,achieve a virtuous cycle of investment and financing,and improve the efficiency of the use of funds.Thirdly,REITs can reduce the financial risk of enterprises.Improve the operation of enterprises,reduce the probability of financial crisis.Based on the above conclusions,this paper summarizes the experience of successful REITs issuance of Huaxia China Communications REITs and draws lessons from the development process of mature foreign REITs markets,and draws inspirations for subsequent REITs products from the level of underlying assets and markets: first,choose high-quality infrastructure as the underlying assets of REITs.Second,improve the REITs-related laws,regulations and supervision system.