Motivation,risk Identification And Prevention Of Rental Housing Securitization Financing

Talent is one of the biggest driving forces behind the rapid development of cities.Local governments want to retain talent,and solving the problem of talent housing has become a top priority.More and more places are using rental housing to relieve the housing pressure of talents to a large extent,as a highlight of the policy to attract talents.However,rental housing also has the problems of China’s real estate industry,that is,high financing cost,narrow financing channels,long payback period and so on.The high cost has put a lot of financial pressure on the government.As another form of asset securitization,Reits(Real Estate Investment Trusts)has the advantages of breaking through credit subjects,improving financial structure,improving asset liquidity and reducing financing costs.It is a new financing tool for the construction of large banks such as Real Estate industry and national infrastructure.In recent years,China has vigorously promoted rental housing,and many housing enterprises have issued their own Reits by drawing lessons from foreign financing methods,which has greatly improved the capital problem of real estate.This paper tries to use case analysis method to select representative hainan talent housing rental Reits as a case to analyze the financing motivation and risk response measures of state-owned enterprise asset securitization under government-led and guided projects.This paper first summarizes the definition of corporate financing and Reits,and combs the relevant literature.Then it analyzes the motivation and risk of local state-owned enterprises using Reits financing,and then introduces the relevant situation of Hainan Development Holding Co.,LTD.,analyzes the motivation of using Reits financing and the possible risks in the survival process of Hainan talent rental housing Reits,and puts forward countermeasures to alleviate the risks of rental housing Reits.According to the research and analysis,the conclusion of this paper includes the following five points:First,the development mode of Reits is very suitable for the development of talent rental housing,and local governments can actively adopt this way to finance in the future.It can obtain competitiveness in talent competition and greatly reduce the financial pressure of local government.Second,asset securitization can realize the de-stocking of real estate,and at the same time solve enterprises’ demand for a large amount of capital.Third,for local governments,talent housing REITS is a successful pilot of REITS,and the government applies this method to other urban infrastructure construction.For infrastructure with a huge demand for capital,reduce the financial pressure of the government and promote the asset-light transformation of infrastructure construction.Fourth,the cash flow generated by the underlying assets of rental housing Reits is relatively weak and has a high risk.Risk needs to be spread through a diversified base of assets and developed in an environment with government guidance and assistance.Fifthly,private equity Reits still have certain limitations in China,tax preferential policies have not been fully realized,and relevant laws and regulations have not been perfected.It is imperative to improve relevant laws and regulations and implement public Reits.