Research On The Problems And Countermeasures Of Long-term Rental Apartments To Explore The Operation Of REITs

In 2017,the report of the 19 th National Congress of the Communist Party of China made it clear that "housing is not speculation",pointing out the direction for promoting the effective development of the housing rental market.After the 19 th National Congress,China’s real estate industry began to develop in the direction of "simultaneous rent and sale".There is no doubt that the long-term rental apartments have become the future of the real estate industry.The steady and rapid development of China’s long-term rental apartment market can not be separated from the support and guidance of the state,nor can it be separated from scientific and compliant channels to introduce social capital into the long-term rental apartment market,so as to solve the financing difficulties and difficulties in expanding the scale faced by the development of long-term rental apartments.In this context,asset securitization products-REITs were born.REITs are the financial process in which real estate with poor liquidity and non securities form is directly transformed into tradable funds in the capital market.REITs are still in the initial stage of development in China.Poly Long Rental Apartments REITs is the first REITs leased by a central enterprise in China,which has a profound impact on the long rental apartment market and the REITs market.Based on the development experience of China’s long-term rental apartment market and REITs products,this paper gives reasonable suggestions from different levels to make contributions to the healthy and orderly development.This paper studies the development of REITs in long rent apartments in China by using the methods of literature study and case study.Based on the analysis of the representative case of Baoli Long Rental Apartments REITs,this paper finds out the problems in its application,and further gives countermeasures and suggestions to improve the REITs of China’s Long Rental Apartments.Based on this,the purpose of this study is to promote the stable and healthy development of REITs related products in the future.This paper includes 6 chapters.The first chapter is introduction.The main contents include: research background and significance,research content and methods,innovations and shortcomings.The second chapter is theoretical basis and literature review.The theoretical basis and literature review respectively include: overview of REITs,financial theories related to the operation of REITs,research status at home and abroad,and related reviews.The third chapter is the characteristics and feasibility analysis of REITS for long-term rental apartments.Covering: REITS model and enlightenment of American long rent apartment,comparison of REITS with other financing methods,feasibility of REITS,development status and application problems of long rent apartment.The fourth chapter is case analysis.The main contents include:introduction to Poly Real Estate,reasons for choosing REITS for Poly Long Rental Apartments,overview of REITS for Poly Long Rental Apartments,operation structure of REITS for Poly Long Rental Apartments,and problems in the application of REITS for Poly Long Rental Apartments.The fifth chapter is the countermeasures and suggestions to improve the REITS of long-term rental apartments in China.The main contents include: policy and regulation level,market level,enterprise level,investor level countermeasures and suggestions.Chapter VI Research conclusions and prospects.The main conclusions of this study are as follows:(1)There are four levels of problems in REITs of long-term rental apartments in China: the development of policies and regulations;Development problems in the market;Problems at the enterprise’s own level;Investor level issues.(2)In view of the problems existing in REITs of long-term rental apartments in China,it needs to be optimized from four levels.Suggestions on policies and regulations: We should improve relevant policies and regulations,accelerate the implementation of preferential tax policies,guide the transformation to public REITs,and strengthen the training of professional high-quality talents.Suggestions on the market level: at the market level,we should standardize the real estate market environment,improve the liquidity of the secondary market,improve the quality of credit rating,improve the level of information disclosure,and improve the construction of risk supervision and management mechanism.Suggestions on the enterprise’s own level: the enterprise should optimize the underlying property assets,adopt the shelf type issuance mechanism,and gradually weaken the main credit enhancement.Suggestions for investors: Investors should appropriately expand the main body of qualified investors and strengthen investor education.