Research On The Operation Mode Of Public Offering Real Estate Investment Trust In China

Real estate is a capital-intensive industry with slow capital flow,long construction time,and limited funding channels.It also forms real estate inventory when the economy is overheated,and increases the leverage ratio of government departments and enterprises.The central government therefore proposed a supply-side structural reform,and used market-based means to implement the task of “three to one,one reduction and one supplement” and actively promote economic transformation.The reference of real estate investment trusts(REITs)will become an important starting point for the reform of the supply side of financial services,focusing on solving the shortage of funds in housing enterprises and revitalizing existing assets.Based on this background,Industrial Bank began to study the feasibility of developing REITs in the inter-bank market,and finally reached a cooperation agreement with Wanxin Media and obtained the administrative license of the People’s Bank of China.At this point,the first domestic inter-bank public fundraising REITs products were born,which is a useful attempt to serve the physical industry in the financial industry.This paper adopts two research methods: case analysis method and event research method.Firstly,it summarizes the types and characteristics of REITs,then analyzes the operation mode of REITs in the United States,points out the types of REITs in China,and compares the domestic and foreign REITs products to explore the differences between China and foreign countries in the process of implementing REITs.And the gap,which leads to the case of this article-Xingye’s new REITs1,and related cases.Then analyze the organizational form,organizational structure,capital operation and credit enhancement mode of Xingye’s new REITs1 operation mode;once again,analyze the investment income of Xingye’s new REITs1 holders,and use event research method to analyze and issue REITs to Wanxin Media.The shareholder wealth effect;finally,by summarizing the case,it was found that Xingye new REITs1 is a public funded REITs with closed-end fund characteristics,and the structure is a combination of private equity funds and trust plans.Since Xingye’s new REITs1 was issued in the inter-bank bond market,the higher threshold for investors has led to low liquidity,but the contractual organization,double-layer SPV organization and perfect credit enhancement measures in the case.It is worth learning and promotion.The conclusion of this paper is that the development of public-recognized REITs products in the context of the current tax structure and economic policy should be contractual,and the two-tier SPV organizational structure and equity credit structure should be constructed to achieve reasonable tax avoidance.Suggestions and policy recommendations for the development of REITs in China: Product design can build a new structure of stock bonds by means of parity transfer of equity claims,strengthen investment,and obtain project property rights;policy should improve the existing tax structure and create tax incentives for REITs Environment,while special legislation is in place to regulate the development of REITs.