Analysis On The Operation Modes Of China’s Infrastructure REITs

Since the emergence of real estate investment trusts(REITs)in the United States in 1960,REITs have increasingly become one of the most important means of financial and inclusive infrastructure projects.China’s REITs market has experienced three stages : overseas listed REITs,domestic REITs and infrastructure REITs pilot projects.Since the first batch of infrastructure REITs in China was officially listed in Shanghai and Shenzhen Stock exchanges on June 21,2021,a total of 25 REITs have been listed by February 2023,raised nearly 80 billion yuan.In order to revitalize the rental stock assets,optimize the structure of the real estate market and promote the development of the financial market,the Chinese government included affordable rental housing into infrastructure REITs pilot projects in 2021.On August 31,2022,Hongtu Shenzhen Anju REIT was officially listed as the first batch of affordable rental housing REITs pilot projects.Due to the lack of land supply,Shenzhen talent housing has always been in short supply.An in-depth study of the operation mode of Hongtu Shenzhen Anju REIT is of important significance for the promotion of affordable rental housing REITs.Based on relevant researches at home and abroad,this paper divides the operation mode of infrastructure REITs into institutional design at the government level and transaction structure at the implementation level.This paper conducts research in the following order: First,summarizes the development and the operation mode of infrastructure REITs in major typical countries(regions) and China from the aspects of institutional design and transaction structure;Then,introduces the Hongtu Shenzhen Anju REIT case,including the basic situation,the main parties and operation mode;Then,analyzes the operation mode of Hongtu Shenzhen Anju REITs,including the advantages of institutional design,,transaction structure advantages,problems of operation mode;Finally,draws the conclusion based on the above research.According to the potenetal problems found in the research,this paper puts forward the suggestion to optimize the operation mode of infrastructure REITs,such as increasing preferential tax policies,improving laws and regulations on infrastructure REITs,and strengthening construction of infrastructure REITs market.The suggestion can provide the experience for the subsequent innovative investment and financing mode of indemnification lease.