Analysis On The Financing Mode Of Trust Investment Fund For Real Estate Enterprises In China

In the nearly 40 years since the reform and opening up,China's real estate industry has become an important pillar of the national economy and an important carrier of the wealth of Chinese residents.It is closely related to social economy and national life.The effect of the bubble came from the "highly leveraged" rapid growth that relied on bank loans in the early stages of development.The real estate industry is a capital-intensive industry,and financing is crucial to its survival and development.Since the end of 2016,under the "long-term regulation" of the real estate industry and the "deleveraging" keynote of supply-side reform,financing difficulties have become the main problem of the real estate industry.Limited financing channels threaten the survival of real estate enterprises,but also limit the development of real estate enterprises.Therefore,seeking a new financing method to ensure the normal operation of enterprise capital is crucial to real estate enterprises.With the introduction of various national policies and the government's strong support for innovative financing methods,the "nine financial countries" and relevant documents issued by the people's bank of China have encouraged the development of real estate trust and investment funds(REITS).The REITS financing model of yunnan chengtou also emerges as The Times require.Based on modern financing theory and partial asset securitization theory,this paper analyzes the current financing situation of real estate enterprises in China.Based on the research status of real estate trust and investment fund financing mode,this paper discusses the new approaches of real estate financing in China based on the successful experience and shortcomings of caiyun south hotel asset support special plan.And combine our country specific condition,put forward some Suggestions.The chapters are arranged as follows: chapter 1,introduction.Containing research background and significance,study matters and technical roadmap,domestic and foreign research situation.Chapter two,related concepts and theoretical basis.It is divided into two parts: on the one hand,it introduces several important concepts of REITs and REITs classification;on the other hand,it introduces the theoretical basis of introducing social capital into real estate enterprises and the theoretical basis of asset securitization.The third chapter introduces the main financing mode of real estate enterprises,mainly introduces the financing mode of real estate trust investment fund.The fourth chapter is case analysis,in yunnan province city real estate investment trust fund financing mode and financing motivations effects are analyzed,including the establishment of the underlying assets,real estate investment trust fund set up model and participate in the main body,the pattern design process operation of real estate investment trust fund,profit model of real estate investment trust fund arrangement.Chapter five,reference and suggestion.Through the above case study,this paper summarizes the problems of REITS in China's real estate financing,and provides experience introduction for China's small and medium-sized real estate enterprises to use REITS financing.Chapter six,summary and prospect.Through the case study,it is found that compared with bank credit and bond issuance,the REITS financing mode has advantages of low threshold and high efficiency,and real estate enterprises can quickly obtain the required funds through the REITS financing mode.The REITS financing model can increase the free cash flow of the enterprise without raising the financial leverage and to some extent alleviate the asset turnover difficulty to provide the opportunity for the enterprise to invest in new projects or repay previous debts to reduce the debt ratio.Although the REITS financing model in this case is close to the international standard,there is still some gap in terms of insufficient liquidity,unchangeable financing scale,transaction threshold and other aspects,and it still needs to be improved in terms of legal system and tax environment.This paper takes the first hotel REITS case as the research object and provides a new way of thinking for the financing of real estate enterprises.The main conclusions are as follows: first,the REITS financing of yunnan chengtou group plays an exemplary role.The group is a state-owned assets supervision and administration commission(sasac)enterprise.The successful issuance of yuncheng investment group REITS has explored a new realization path and reform mode for other Chinese real estate companies,especially state-owned enterprises,and also provided ideas for innovative financing mode.Second,the REITS financing mode broadens the financing channels of enterprises and solves the problem of financing difficulty of enterprises to a certain extent.Through the detailed analysis of the financing of yunnan chengtinvestment group before and after the article,it can be seen that REITS is an efficient financing mode,which concentrates the idle social funds and invests them in the real estate enterprises with great demand for capital,and meanwhile enables social investors to invest in the real estate industry with high barriers and obtain profits.For the financing side,it has optimized the financial leverage,filled the fund gap and other positive effects.Third,there are still some problems in the development of China's REITS,such as imperfect legal system,lack of tax incentives,poor liquidity and so on.This REITS of cloud city investment group also made some exploration and improvement,such as providing liquidity support,setting up margin system and so on.However,the state should also attach importance to the development of REITS,create a legal environment suitable for their development,and constantly deepen the reform of exploring REITS.