Case Study On Risk Prevention Of Poly Rental Housing REITs

As a mature product that has been used in overseas markets for more than 50 years,Real Estate Investment Trusts(REITs)are still a new thing in China.The official introduction of REITs in China began in 2005.Yuexiu Investment successfully issued Yuexiu REITs in the Hong Kong stock market and became the first real estate investment trust in China.With the successful launch of Zhongxinqihang REITs in 2014,the domestic REITs market began to develop gradually.Due to the advantages of low-cost financing,stable income and diversified portfolio risk,REITs have been recognized by more and more real estate companies.By the end of 18,the number of domestic REITs reached 44 and the scale reached 94.2 billion.Due to the short time for the introduction of REITs in China,there are relatively few studies on REITs,especially the literature on risk prevention is limited.For enterprises,it is very necessary to understand the risk prevention problems of REITs in the issuance process,and to take precautionary measures against potential risks as early as possible to avoid the loss of reputation and interests of enterprises,so the risk prevention problem of REITs in combination with cases In-depth analysis is crucial.Driven by the joint publication of the China Securities Regulatory Commission and the Ministry of Housing and Urban-Rural Development,2018 was called the first year of REITs,and the circulation reached a peak of 15.Among them,Poly Group's REITs,which were issued by Poly Group,have issued the first domestic rental housing REITs under the shelf distribution mechanism,which has attracted much attention in the domestic REITs market.This article will use case study method,literature analysis method,refer to relevant literature at home and abroad,sort out the basic theories of REITs,and based on this,combine the case background to explore the problems in the risk prevention of Poly leased housing REITs and analyze the causes.The final conclusion is that the lack of law,lack of liquidity and insufficient decentralization may lead to the lack of risk prevention of REITs products.Through case analysis,the paper proposes that: For legal risks,we should be good at borrowing from foreign countries,we should make good use of the credit enhancement agreement for liquidity risks,and we should try our best to decentralize the basic assets.The government should improve the law and strengthen external supervision.