Research On Financing Risk Analysis And Response Of Water Infrastructure REITs

In recent years,the increase of ecological protection has put forward higher requirements for the quality of water infrastructure,and the work of strengthening the weak points and strengthening the weak points of sewage treatment infrastructure has been gradually put on the agenda.Water infrastructure has a large demand for funds and a long payback period,so it is urgent to provide stable and sufficient construction funds with financing tools matching its characteristics.The financing method of real estate investment trust funds(hereinafter referred to as REITs)provides a new financing channel for water infrastructure construction.Public offering of infrastructure securities investment funds(hereinafter referred to as infrastructure REITs)is the application of REITs in the field of infrastructure,which provides a new idea for revitalizing precipitation funds.However,as a new financing product,there are still some problems such as insufficient experience in operation and management,and supporting policies still need to be improved.Such problems can easily lead to various risks in the financing process of REITs,thus causing losses.Therefore,it is necessary to pay close attention to the factors that may cause the financing risks of REITs and take risk countermeasures.This paper takes the Fullgoal Capital Water REITs issued of Capital Group as an example to identify and evaluate its financing risks,and puts forward risk countermeasures.Firstly,this paper introduces the topic of financing risk of water infrastructure REITs through the research background and significance,and provides a theoretical basis for the analysis and response research of financing risk of REITs combined with relevant concepts and theoretical basis.Secondly,this paper introduces the case of the Fullgoal Capital Water REITs,analyzes the motivation of Capital Group issuance of REITs,and sorts out the operation mode of the Fullgoal Capital Water REITs.Thirdly,the questionnaire survey method and literature research method are used to identify and screen financing risks,including policy risk,market risk,public offering fund risk,underlying asset risk and emergency risk.The identified risks are evaluated by the fuzzy comprehensive evaluation method,and the risk results are analyzed to lay the foundation for the proposal of risk response measures.Finally,according to the risk evaluation results,risk countermeasures are put forward from five aspects: improving preferential tax policies,building the whole chain supervision mechanism,improving the professional level of operation,ensuring the stability of underlying assets,and building a good market ecology of REITs.Water infrastructure REITs have a broad space for development in the future,and their promotion will be further strengthened.This paper provides a comprehensive analysis of the relevant risks existing in the financing of water infrastructure REITs,so that the relevant research can be applied to other water infrastructure REITs,promote the healthy and orderly development of their financing,and respond to the national requirements for high-quality development in the environmental protection field.