The Research On Application Performance Of Suning REITs Financing Model

In recent years,the rise of new technologies such as Big Data,Artificial Intelligence,Mobile Internet,Cloud Computing,Internet of Things and the Blockchain has had a great impact on China’s consumer behavior and the retail industry.The disadvantages of traditional retailers’ asset heavy development model are gradually emerging,and retail enterprises urgently need to transform to asset light model.However,new retail enterprises in transition need not only dynamic cash flow,but also broaden the past financing channels,improve the speed of capital circulation.As a new financing model,Real Estate Investment trusts(REITs)meet the needs of financial market reform and enterprise transformation,and are gradually favored and applied by retail enterprises.This paper adopts the case study method and selects Suning as a case enterprise.Firstly,it reviews and summarizes the relevant literature and theoretical basis of REITs at home and abroad;After analyzing the current situation of China’s retail industry,this paper introduces the development of Suning and the design of REITs financing scheme;Then,it discusses the specific motivation for the enterprise to choose REITs for financing,and analyzes the feasibility of implementing REITs combined with the enterprise’s own situation;Then,using the synthetic control method to explore the changes of financial performance of Suning REITs before and after financing,using the principle of event research method to analyze the impact of REITs on shareholders’ wealth in the short term,and measuring the enterprise risk level based on the Z-Score model.The study found that under the trend of focusing on asset operation to neglecting asset operation,the issuance of REITs products injected more vitality into Suning,which is seeking development,and successfully helped the enterprise realize the transformation and upgrading of strategic model.The specific performance is as follows:after the implementation of REITs,the circulation speed of enterprise assets is accelerated and the financial performance is significantly improved;The increase of shareholders’ wealth sends a positive signal to market investors and achieves good market performance;It broadens the financing channels of enterprises,reduces the financial risks of enterprises,and shows other enterprises a practical new financing model.The research also puts forward relevant suggestions for the future application of REITs financing,hoping to have some reference significance for the development of this financing model in the future.