Research On Financing Mode Of Infrastructure Public Offering REITs

Infrastructure plays an important role in national strategic development,improvement of people’s quality of life,development of social and economic and other aspects.In April 2020,China officially launched the pilot work of public REITs in infrastructure areas,which marked the official start of public REITs in China.In June 2021,the first batch of nine infrastructure public REITs were issued and listed,which marked a key step forward in China’s pilot work of public REITs.Infrastructure REITs is not only a new way to solve the financing problem of infrastructure,but also a new choice for real estate enterprises to raise funds.At the same time,it is also a new variety for investors to join in real estate investment.However,the problems existing in the pilot process of infrastructure REITs are also constantly revealed.Therefore,this thesis aims to conduct a case study of Zheshang Shanghai-Hangzhou-Ningbo REIT from the perspective of financing mode,summarizing the successful experience,so as to provide useful reference for the pilot work of public offering REITs for infrastructure in China.This thesis selects Zheshang Shanghai-Hangzhou-Ningbo REIT belongs to expressway industry among the first nine infrastructure public REITs for case analysis.In the case introduction,firstly,it introduces the expressway industry background,the general situation of Zheshang Shanghai-Hangzhou-Ningbo REIT,and the general situation of Huhangyong Company which is the original owner.In the part of case analysis,firstly analyzed the operation structure of Zheshang Shanghai-Hangzhou-Ningbo REIT and find that its operation structure is relatively reasonable,but there is still room for optimization.The second is to analyze the financing effect of Zheshang Shanghai-Hangzhou-Ningbo REIT.Comprehensive income analysis is to analyze the financing effect of the REIT by analyzing the income available to investors,and through the study of Event Study and financial index method found that the issuance of Zheshang Shanghai-Hangzhou-Ningbo REIT can bring certain positive effects to the company,but mainly the short-term impact.The long-term effect is not obvious.Then analyzes the potential risks of Zheshang Shanghai-Hangzhou-Ningbo REIT,mainly from the liquidity risk,tax risk and risk of policy and regulatory.In addition,by comparing the transaction structure,fundraising method,underlying assets and secondary market performance of the first nine infrastructure public REITs listed to summarize characteristics and commonalities of infrastructure REITs,making the conclusions of this thesis more general.Finally,it summarizes the success and shortcomings of Zheshang Shanghai-Hangzhou-Ningbo REIT issuance.The study finds that the transaction structure design of Zheshang Shanghai-Hangzhou-Ningbo REIT is in line with the actual situation in China,the selected basic assets are of high quality,and it broadens the investment channels of social capital and provides investors with a new choice of asset allocation,but there are still certain risks in the pilot stage.Based on the characteristics of infrastructure REITs,relevant suggestions are put forward.Through this case study,this thesis not only gives some inspiration to relevant enterprises in the field of infrastructure to choose REITs financing mode,but also helps the development of the pilot work of public infrastructure REITs in China.