Analysis On REITs Risk Control Of Penghua Qianhai Vanke

The real estate industry has always been related to the lifeline of the national economy and has an irreplaceable position in our entire economic system.The stable and sustainable development of the real estate industry not only affects the lives of the broad masses of people,but also affects the economic development of the entire country.As a capital-intensive industry,the real estate industry has its distinctive features.On the one hand,it occupies huge amounts of funds.On the other hand,it has a long period and poor liquidity.This makes real estate developers face enormous challenges in raising funds.At the same time,it also makes it extremely difficult for private capital to enter the real estate market.As China's financial market is still not sound enough,China's real estate financing still relies mainly on indirect financing from banking financial institutions.Because of risk prudence,banks will set a lot of lending conditions to avoid risk,so it is very difficult for real estate developers to pass banks.Get enough loans.Most real estate companies,especially for small and medium-sized enterprises with a larger proportion of the total number,are difficult to meet the standards for listing companies,and it is difficult to obtain funds through direct financing tools such as stocks and bonds.This has led to the large-scale adoption of many small and medium-sized enterprises.The debt relationship financing will continue to increase leverage,which will not only increase the company's financial risk,form an unreasonable capital structure,but also increase the entire real estate market's business risks.It can be said that in order to maintain the sound development of the real estate market,adequate external financing and diversified financing methods have become indispensable tools.As an innovative financing tool,REITs use asset securitization to transform real estate assets with very poor liquidity into liquid financial asset assets,which has opened up a new financing model for real estate developers.The idle private capital is effectively assembled and involved in real estate investment,so that individual investors can also use their idle funds to participate in investment in real estate projects.The introduction of REITs into China is relatively late,and so far it is only at the initial stage of development.The previous REITs products are only Chinese-style REITs products created in the formof private equity.The Penghua Qianhai Vanke REITs that appeared in 2015 are our country.The first public investment fund invested in REITs,and the REITs product that is the closest to international standards in China so far,has great significance for the development of China's REITs.This article adopts literature research and case study methods.First,it reviews and collates the literature on the development,operation,and risk management of REITs at home and abroad.It provides the theoretical basis for the full text,and then uses Penghua Qianhai Vanke REITs' case presentation.While paying attention to the advantages of REITs as a new type of financing method,people are also aware of the possible risks,and at the end put forward corresponding preventive and remedial measures in order to promote the development of REITs in China and better solve them.Real estate industry financing issues.This article is divided into six chapters.The first chapter introduces the research background and significance of this topic,expounds relevant domestic and foreign literature,and sets out the structure of the whole text.In Chapter 2,it first introduces the unique advantages of REITs over other financing methods,and then introduces the current real estate financing in China.The commonly used methods and financing situation highlight the necessity of REITs as a new type of financing method in China,and then compare the current development status and model of domestic and foreign REITs;Chapter III,Penghua Qianhai Vanke REITs case description and operation model Analysis;Chapter IV,through the case study of Penghua Qianhai Vanke REITs,we should see REITs as a new type of real estate financing,while at the same time,also need to pay attention to its possible risk analysis;Chapter 5,analysis of the previous chapter Out of all the potential risks of proposed control;Chapter VI,conclusions and recommendations.Summarize the full text and make some suggestions for the development of REITs in the future.