Risk Analysis And Prevention And Control Of Infrastructure REITs In China

The investment scope of real estate investment trusts in 37 countries and regions(hereinafter referred to as "REITs")has expanded from commercial real estate to transportation,energy,municipal,warehousing and logistics,and big data centers.In recent years,the state has promulgated a series of relevant policies and regulations to promote the development of infrastructure REITs and market construction.On April 30,2020,the National Development and Reform Commission(NDRC)and CSRC jointly issued the "Notice on Promoting the Work Related to the Pilot of Real Estate Investment Trust Fund(REITs)in the Field of Infrastructure" and "Guidance for Public Offering of Infrastructure Securities Investment Fund(Trial Implementation)",which drew back the prologue of the pilot of public offering of infrastructure REITs in China.REITs is an important tool of real estate securitization in China,which is closely combined with the infrastructure construction,according to the policy and market demand,and can effectively activate the stock assets,improve the financing efficiency of enterprises.However,there are certain risks in infrastructure REITs,such as the lack of stability of the cash flow of the underlying assets and the moral hazard of the relevant subjects involved,which will have a certain negative impact on the interests of investors.Therefore,the risk research on infrastructure REITs has certain practical significance.When studying the risks of infrastructure REITs,this paper selected the "Huaxia China Communications Construction Highway Closed Infrastructure Securities Investment Fund"(hereinafter referred to as "Huaxia China Communications Construction Highway REITs")issued by CCCC in 2022,so as to assess and prevent the risks of its subjects.This paper mainly includes the following contents: First,it expounds the meaning,classification,structure,operation process of REITs and the theoretical knowledge related to REITs risk.Second,according to the collected literature content,the current development process of infrastructure REITs is given,and the risks of infrastructure REITs are elaborated and analyzed from macro,meso and micro levels.Thirdly,the basic situation,participants and transaction structure of Huaxia CCCC high-speed REITs are introduced.On this basis,qualitative and quantitative methods are adopted to analyze the risk of Huaxia CCCC high-speed REITs.Among them,qualitative analysis is mainly carried out from macro,meso and micro levels.It is found that market uncertainty,the change of supply and demand in the highway industry,the fluctuation of net income of basic asset operation and management level will bring risks to the project.The quantitative analysis part mainly calculates the market effect,the value of the underlying assets,the change of the net cash flow of the project operation,the financial status of the main original stakeholders and the credit of the sponsors of Huaxia CCCC high-speed REITs issuance.Finally,based on the qualitative and quantitative analysis of the risk of Huaxia CCCC high-speed REITs,suggestions on the risk prevention and control of China’s infrastructure REITs are put forward from four aspects:industry,participants,basic assets and legal supervision.