Case Analysis Of Wanxin Media's Use Of Real Estate Investment Trust Fund Financing

Real Estate Investment Trusts(REITs)originated in the United States in the 1960 s.It is an innovative financial product that can obtain stable cash flow by investing in various types of real estate.At the beginning of the 21 st century,the concept of REITs was introduced into China and developed gradually.China's real estate industry has entered the "stock era" in recent years after rapid development.Enterprises have a large number of property assets,inventory assets will continue to increase.Moreover,in the process of development,enterprises have a single financing channel,lack of system and product innovation in investment and financing,and their leverage ratio remains high.It not only limits the development of real estate industry and related enterprises,but also accumulates certain financial risks.Through the development of REITs,it can activate the stock assets of real estate and related enterprises,provide new financing channels,and reduce the financial dependence on banks and other financial institutions.In this context,Wanxin Media responded to the call of the state and combined with its own development situation,through the joint participation of its own bookstore assets,successively issued two REITs products: "CITIC Wanxin Yuejia Phase I Asset Support Special Plan" and "Xingye Wanxin Yuejia Phase I Real Estate Trust Investment Fund Asset Support Securities",which realized the first public distribution of China's REITs products in the inter-bank market.It is also the first RREITs product with state-owned assets as the underlying assets.It has certain research significance and analysis value,and can provide experience for other enterprises.This paper takes the issue of REITs by Wanxin Media as an example,combs the domestic and foreign research on REITs and the related theory of REITs,and makes a comprehensive analysis on the issue of REITs and REITs products by Wanxin Media.Firstly,it gives a brief introduction to the issue of REITs by Wanxin Media,and analyses its motivation of issuing REITs.Secondly,one of the REITs products is selected to analyze its transaction structure design.Then,from the financial point of view and non-financial point of view,this paper expounds the impact of REITs product issuance on enterprises.Thirdly,the risks and corresponding measures in the process of REITs product issuance are analyzed and described,as well as the limitations of REITs products.Finally,from the micro and macro aspects,this paper puts forward some suggestions to optimize the REITs of Wanxin Media.Based on the case study of Wan Xin Media's REITs product distribution,the following conclusions are drawn: under the current economic situation in China,enterprises are facing transformation and upgrading,while a large number of stock assets value precipitation,there is an inherent demand for REITs issuance.Wanxin Media's REITs products have innovative distribution channels and rigorous internal structure design.The issuance of REITs can optimize the capital structure and enhance the profitability of enterprises,at the same time,it can effectively activate the stock assets,broaden financing channels,reduce financing costs,and establish a good image for enterprises in the capital market.Generally speaking,REITs,an innovative financial product,should be promoted.The experience of Wanxin Media in issuing REITs is worth learning.