The Analysis On The Application Of Infrastructure Reits In Expressway Industry

China’s infrastructure construction has entered the stock era from the incremental era.How to revitalize the stock assets has become an urgent problem to be solved.The launch of Infrastructure REITs is of great significance.First,the launch of Infrastructure REITs is conducive to financial deleveraging at the macroeconomic level and reducing the risk of debt defaults.Secondly,it is conducive to revitalizing stock assets and improving the reinvestment ability of infrastructure enterprises.Third,provide an exit channel for infrastructure investment and form a complete chain of "investment-construction-operation-exit-reinvestment".Fourth,it is conducive to attracting more social capital to participate in infrastructure construction investment.Fifth,it is conducive to improving the operation and management level and efficiency of infrastructure.The expressway has a clear profit model and relatively stable cash inflow,which is a suitable target for issuing Infrastructure REITs.In view of the current investment and financing characteristics of China’s expressway industry,the traditional debtbased financing model has been unable to support the investment and maintenance needs of expressways.The introduction of Infrastructure REITs will play an important role in expressway industry financing.Using the case study method,this paper firstly analyzes the significance of China’s development of Infrastructure REITs,the application of REITs in the field of infrastructure,the role of REITs in expressway industry financing,and compares REITs with other infrastructure financing methods.Then,taking the Hanghui Expressway Public REITs project as a research case,using a combination of qualitative and quantitative methods to analysis.The four aspects of the selection of basic assets,the design of product structure,the accounting of original equity holders,and the financing effect are analyzed.The study found that the characteristics of REITs are in line with the financing needs of the expressway industry.The basic assets are the basis for issuing REITs,so the quality of the basic assets determines the quality of REITs.A reasonable product structure is the basis for the successful issuance of REITs.In terms of accounting,the current projects reflect the equity attributes of REITs.Finally,due to the short issuance time of REITs,it is not easy to judge the long-term impact on the original shareholders,but the short-term financing effect is good.The paper also analyzes the risks and potential problems of issuing REITs in the expressway industry,including the franchise has a term,so subsequent issues of going concern and capital appreciation need to be resolved;expressway ownership and transfer issues;factors that affect valuation and revenue fluctuations are complicated;follow-up management must ensure the fulfillment of franchise responsibilities;the existing structure affects the issuance effect,etc.Finally,this paper puts forward some suggestions for the above analysis.First of all,companies planning to issue REITs should sort out projects that meet the issuance standards in advance and make good project reserves.Secondly,do well in advance the financial,accounting and tax planning before and after the issuance of REITs.Continuously improve the operation and management capabilities to ensure the quality of expressway operation.Finally,consider setting up a professional operation team for infrastructure projects to improve the efficiency of operation and management.