Analysis On The Financing Mode Of China's Public Rental Housing REITs

In recent years,the rapid development of urbanization in China has led to a rapid increase in the size of the urban population.The housing of some cities has exposed the serious problem of insufficient supply.Public rental housing is an inseparable part of the domestic affordable housing system.It is an important way to alleviate the lack of urban housing supply and solve the housing needs of low-and middle-income people.Then,with the gradual increase in the scale of public rental housing construction,it is reflected that the government-led public rental housing financing approach relies too much on fiscal revenue and bank loans,how to innovate public rental housing financing model,and protect the sustained and healthy development of public rental housing has become an urgent problem to be solved.REITs are financial innovations in real estate financing.They can solve the problems of large real estate financing,lack of real estate liquidity,and slow turnover of assets.REITs can solve the difficulties of public rental housing financing in China.At the same time,China is currently vigorously advancing the implementation of REITs.Financial innovative products of REITs emerge in an endless stream.The capital market has also formed an environment for the development of REITs.This paper mainly focuses on the feasibility study of using REITs in public rental housing financing in China.It consists of five parts: The first part makes a detailed description of the research background,research methods and practical significance,literature review at home and abroad,and recommends the introduction of REITs.To the construction of public rental housing financing.The second part explains the basic theory of REITs,including definitions,different types,and operating modes.It summarizes the advantages in particular,and studies the advantages of public rental housing financing,financing difficulties,and the introduction of public rental housing in REITs.It is found that the use of public rental REITs financing is completely feasible in China,and therefore an effective innovative financing method has been found for the construction of public rental housing in China.The third part mainly designed the way of financing and organization of REITs in China.It is suggested to choose the contractual REITs organizational structure.TheREITs sponsoring institution shall establish a closed-end trust fund.The government shall approve and employ special REITs managers and REITs custodians,choose publicly raised funds to raise construction funds,and gain proceeds from renting houses and commercial facilities.The overall idea that is assigned to investors as a reward.The fourth part focuses on the analysis of the development of Hong Kong REITs.Hong Kong Link REITs are used as a reference case to introduce the operating model and specific benefits of REITs in order to provide experience for the development of REITs in China.In the fifth part,we will increase the expected rate of return on REITs by raising credit ratings,creating the necessary legal tax environment,formulating supporting preferential policies,establishing a comprehensive secondary market for public rental housing REITs,and bundling public rental housing with commercial real estate to raise funds for REITs.Ways to improve.