Case Study Of Financing Model Of Shanghai-hangzhou-ningbo-hangzhou-hui Infrastructure Public Offering REITs

Infrastructure is often seen as the engine of economic development and the underlying support for the continued improvement of the national economy.While precipitating a large number of high-quality assets in China’s infrastructure field,there are problems such as large scale of real estate stocks,poor liquidity,and imperfect exit mechanisms.Moreover,investment in infrastructure construction is often dominated by local governments and state-owned enterprises,which leads to the problem of rising leverage ratios of local governments and enterprises and the continuous expansion of debt risks.With the advancement of supply-side structural reform,China’s economy has ushered in a turning point in development,from the original simple pursuit of speed growth to the pursuit of high-quality economic development.In the special period of economic transformation,the extensive development mode is difficult to sustain,and the traditional financing mode of infrastructure is facing increasing pressure.Innovative financing tools are urgently needed to transform the infrastructure financing model and promote the healthy and sustainable development of the infrastructure sector,so as to promote the high-quality development of China’s economy.As a financial tool with an innovative financing model,REITs are an efficient way to realize real estate securitization,which is conducive to broadening corporate financing channels and promoting the capital market to serve the real economy.Huhangyong Hanghui High-speed Closed Infrastructure Securities Investment Fund(hereinafter referred to as "Hanghui High-speed REITs")is China’s first public REITs product with expressways as the underlying assets,and as a pilot product that stands out from the selection of layers,its organizational structure and operational characteristics are quite representative.This article takes Hanghui high-speed REITs as a case study.Firstly,the main financing models of infrastructure assets are introduced from the perspectives of increment and stock,and the types of REITs models are analyzed and summarized.After that,the basic situation of Hanghui high-speed REITs products is introduced,and then the standardized operation mode is analyzed from the design process of organizational model and transaction structure,and the benefit level of investors is analyzed from the aspects of income,valuation and correlation,and the impact of product issuance on the volatility of the original equity holder’s stock price is explored through the event research method.Finally,based on the analysis process,we summarize the successful experience and shortcomings,and put forward targeted suggestions according to the actual situation of China’s national conditions and products,so as to give full play to the functional role of public REITs in promoting economic transformation,improving the capital market and improving the national capital structure,and at the same time,it is hoped that the relevant conclusions can provide certain reference significance for the healthy development of Public REITs in China’s infrastructure.