On The Legal Path For The Implementation Of Infrastructure REITs In My Countr

In April 2020,the state issued the Notice on Promoting the Pilot Work of Real Estate Investment Trust Fund(REITs)in the Infrastructure Field,indicating that the pilot work of infrastructure public offering REITs officially set sail in China,and the market also called 2020 as the first year of China’s public offering REITs.On March 11,2021,the national "difference" planning "expand investment space",clearly express to promote infrastructure REITs healthy sustainable development and infrastructure REITs has great advantages,can promote infrastructure project construction funds recycling,directly illustrates the infrastructure REITs has become an important means to promote investment,promote economic development.At present,China’s infrastructure financing is facing a development bottleneck: since the local government infrastructure construction is not based on direct financing,resulting in local government debt,and the quota management of local government debt scale,local government finance has no funds to invest in new infrastructure projects;and the development of urbanization and the deployment of major national strategies have put forward higher requirements for the expansion of infrastructure and supply efficiency and quality,the PPP model is not enough to solve the current problem.As mentioned above,the pilot of infrastructure REITs in China is a new thing for the public and other market players,and different from previous REITs products,this pilot is a public offering of REITs.Public offering REITs involve a wider range of public subjects and more interests.Once problems occur,the interests of ordinary investors will be damaged,which is not conducive to social stability.At the same time,China has not yet issued special regulations on infrastructure REITs,and the legal supervision and norms are not mature and perfect enough.Therefore,starting from the concept of infrastructure REIT given in the pilot document,this paper analyzes the advantages and necessity of developing infrastructure REITs from the perspective of macro-control,and compares the three different modes of infrastructure financing of local government debt,PPP model and REITs in China.By introducing the legal status of infrastructure REITs and evaluation,analyzes the public offering trust,corporate and limited partnership three infrastructure products may exist legal obstacles,points out that infrastructure REITs exist transaction structure is complex,repeated taxation,bankruptcy risk isolation is unclear,infrastructure REITs supporting rules is not perfect and product governance structure is not sound.By drawing on the experience of issuing infrastructure REITs in countries outside the region(USA,Japan,Australia),In view of the above problems,the following suggestions are put forward:1.China should make special legislation on infrastructure REITs;2.Based on China’s national conditions and legislative costs,Infrastructure REITs should be set up as trust products;3.Simplify the trading structure,Give certain preferential tax policies,Promote the effective connection between the application of infrastructure REITs and the relevant legal systems;4.Carefully select rating agencies,improve the information disclosure system and governance structure,Moderate control of the issuance scale,To protect the interests of investors.