Research On Real Estate Investment Trusts Fund Finance

The real estate industry is one of the important factors affecting China’s macroeconomy.At present,under the policy of reducing enterprise leverage and strengthening macro-control of the real estate market,the financing channels of the real estate industry are limited,and real estate companies need to find ways to match themselves.As one of the new financing methods,real estate investment trust fund is one of the current popular asset securitization financing methods.REITs ’financing advantages are obvious,but China’s current policies and laws on REITs are not perfect enough,and there are certain differences with international standards REITs.Therefore,to study the financing effect of REITs in our country at this stage,and whether it can effectively solve the problems of financing difficulty and low financing efficiency of our real estate enterprises under the tight housing market regulation policy,so as to reduce the risks of real estate enterprises and achieve the goal of stable and healthy development of the real estate industry,will directly affect the development degree of REITs in our country,which deserves our attention and research.By studying the financing effect of Vanke REITs,it can not only enrich the relevant financing theories of enterprises,but also provide reference and suggestions for the real estate industry to find financing channels that conform to the national policy guidance and are suitable for itself,and improve the relevant legal system of REITs in China,which is in a far-reaching significance.Using the method of combining theory and case study,this paper analyzes the financing effect of REITs,and on the basis of analyzing relevant research results of REITs,analyzes the successful issuance of Vanke’s publicly-funded REITs.Firstly,it introduces the definition of investment trust fund and its financing characteristics.Secondly,it clearly introduces the concept of REITs formed by combining investment trust fund with China’s real estate industry.Through analyzing the financing needs of real estate combined with investment trust fund,it introduces the corresponding theoretical basis,which lays a theoretical foundation for the evaluation of REITs financing effect in the following.Then,through analyzing the current situation of financing effect of real estate enterprises in our country,it introduced the necessity of REITs development in our country and the current development situation.Combined with the case of Vanke REITs,this paper introduces the basic situation of Vanke,and then analyzes the financing situation of Vanke REITs accordingly.At the same time,due to Vanke’s internal and external financing needs,this paper analyzed the REITs motivation Vanke builds.Finally,this paper evaluates the financing effect of Vanke REITs,and analyzes the changes of operating performance and financial risks after Vanke constructs REITs by using event studying,EVA value evaluation,financial index method and Z value model.Through theoretical research and case analysis,this paper draws the following conclusions: the construction of REITs financing can create value for shareholders;the construction of REITs financing can improve financial performance;the construction of REITs financing can reduce the financing burden of enterprises;the construction of REITs financing can reduce the financial risks of enterprises.In addition,the evaluation system proposed in this paper consists of evaluation content,evaluation method and evaluation index.The event studying,EVA value evaluation,financial index method and Z value model have good applicability for evaluating REITs financing effect.At the same time,in the analysis of the development process of building REITs in China’s housing enterprises,this paper also draws corresponding enlightenment to the development of REITs in China: the support of national top-level design is the foundation to promote the development of real estate investment trust funds;the important premise of building REITs is the quality of basic assets;the public offering of REITs will promote the development of China’s REITs market.The innovation of this paper is as follows: First,as the first public offering fund product in China,Vanke REITs’ previous research on REITs mostly focused on private offering REITs.Through the study of public offering REITs,this paper summarizes the characteristics and advantages of public offering REITs on the one hand,and on the other hand,it also contributes to the introduction of more standard REITs in China in the future.The research conclusion of Vanke REITs can also provide reference for other real estate enterprises considering the construction of REITs financing.Second,this paper has increased the research on new financing methods.Since domestic REITs are the financing methods that have emerged in recent years,domestic research on REITs mainly focuses on the feasibility of construction and related practical operation processes.This paper studies the financing effect of real estate enterprises after building REITs,and studies REITs from the perspective of building the main body,hoping to enrich the research perspective of REITs and provide some ideas for the choice of financing methods for real estate enterprises.The limitations of this study lie in: first of all,due to the limited time and energy,when studying the financing effect of REITs on Vanke,only the historical data of Vanke were analyzed,and the financing effect of REITs was not analyzed and compared with that of other housing enterprises horizontally,which could not reflect the uniqueness of financing effect of REITs;on the other hand,in the analysis of the financing effect of the whole real estate industry,the paper does not compare REITs with other financing ways to study the best financing method or mixed financing method suitable for real estate enterprises.