Research On The Impact Of Public REITs On Infrastructure Investment And Financin

The report of the 20 th National Congress of the Communist Party of China pointed out that optimizing the layout,structure,function and system integration of infrastructure and building a modern infrastructure system pointed out the way forward to promote the high-quality development of China’s economy and society.Infrastructure is the main skeleton and artery of economic and social development.To stabilize China’s economy,increasing infrastructure investment has become an important choice.For a long time,China’s capital construction financing mode is mostly based on government investment,coupled with the inconsistency of financial power and power and the imbalance of economic development,the financing channel is relatively single,which is difficult to meet the huge capital gap,and the financing difficulty of the capital construction industry is increasingly prominent.Since the establishment of public REITs in China,it has effectively solved this problem and injected new vitality into China’s economic development and economic restructuring.However,public REITs have been issued for a relatively short time in China,and the impact on the investment and financing mechanism in the infrastructure sector needs further in-depth analysis and research to lay a solid foundation for the high-quality development of "Chinese-style" public REITs.This paper uses the literature research method to sort out the relevant literature at home and abroad,and understand the focus and difficulties of current research.Taking the financial innovation theory as the starting point,carry out in-depth research on the public REITs of infrastructure in China,and take the public REITs of infrastructure,the only one of the first public REITs of sewage treatment franchise type,the first water REIT of rich country,as the research object,and introduce the basic information of the first water REIT of rich country based on the Capital Structure Theory and risk isolation theory,Then compare and analyze the changes in investment and financing methods,scale and other aspects of enterprises before and after the issuance of the REIT,the first water company of Wells Fargo,and further explore the impact of REITs on enterprise investment and financing from the perspective of market and financial performance.Through the analysis,it is concluded that after the issuance of public REITs for infrastructure,enterprises have performed well in both market and financial aspects and achieved positive returns;The product lowers the entry threshold of investors,improves the liquidity of the market,and boosts the inflow of social capital;Optimized the development of the capital market.High-quality underlying assets are the key to the successful issuance of public REITs,which to some extent reflects that public REITs is an investment and financing method in line with the development of the infrastructure industry,but the long-term operational efficiency and risk tolerance of applying public REITs to the sewage treatment industry need to be further explored.Finally,from a practical point of view,the paper summarizes the enlightenment suggestions at the legal policy level,the market level and the participant level,so as to promote the development of public REITs in infrastructure in China.