Rsearch On Financing Problems Of Huihang Expressway REITs

To seek high-quality economic development,boost infrastructure construction and strengthen weak links,exploring new channels of investment and financing is necessary.With the joint promotion of the National Development and Reform Commission and China Securities Regulatory Commission,the pilot project of public REITs was started in April 2020.It also marked that the construction of China’s REITs market entered a new stage.Since then,Relevant policies,measures,legal provisions and documents were issued by China Securities Regulatory Commission,National Development and Reform Commission,Shanghai and Shenzhen Stock Exchanges,Securities Associations and other institutions,and the public pilot work of infrastructure REITs was promoted in an orderly manner.Therefore,it is imperative to promote the development of infrastructure REITs in order to reasonably revitalize and reserve a large number of infrastructure assets,promote the financing of infrastructure projects,and reduce the burden and risk of local debt.Firstly,domestic and foreign literature related to the use of REITs for financing is sorted out,and characteristics,operation mode,rate of return,financing motivation and existing problems of REITs are understood.Then taking the Huihang Expressway REITs as an example,The REITs product is analyzed from the financing motivation,underlying assets,transaction structure,financing amount,credit enhancement and cash flow.And take financing cost,financial performance,tax shield effect,market reaction and other aspects as the evaluation index to measure the financing effect.Finally,the financing method in this paper is compared with other financing methods.Through the analysis of this paper,the following conclusions are drawn: Compared with other financing methods,REITs financing has the advantages of lower cost,good financial performance,lower asset-liability ratio and less negative impact on the control rights of original shareholders.Through the use of REITs financing,enterprises reduce their dependence on traditional liabilities,improve their debt level and overall financial status,and reduce financial risks and operational risks.Through the issuance of REITs products,the tax reduction income is increased,the market positive reaction is enhanced,and the company’s image is improved.Finally,combined with the actual situation of the development of Infrastructure REITs in China,the problems existing in the project,such as deficiencies in taxation,relevant laws and policies,are put forward.