Analysis On Financing Motivation And Risk Of Public REITs On Huaxia Yuexiu Expressway

Entering the 21 st century,China’s economic construction has entered an era of rapid development.Especially in recent years,China has completed the building of a moderately prosperous society in an all-round way and embarked on a new journey to build Chinese-style modernization.In this context,the development of infrastructure construction has become particularly important.As infrastructure projects continue to expand,the growing need for funding becomes more urgent.However,at the present stage,the financing channels for national infrastructure construction are narrow,financing methods are simple,debt pressure based on debt financing and the burden of government-led project construction fund support is too heavy,which leads to the urgent need to seek new financing ways for infrastructure project construction.At this time,the State Securities Regulatory Administration and other relevant departments issued financing measures on infrastructure REITs,domestic enterprises began to try to use REITs for project financing,and infrastructure REITs projects in various fields also opened a new development situation.Real estate,industrial parks,warehousing and logistics and other fields have opened a new development pattern of REITs financing,and the highway field has subsequently entered the development path of REITs projects.Just like expressway construction projects,in order to meet the needs of people’s livelihood and convenience,the "14th Five-Year Plan" emphasizes that the construction of expressway network needs to be promoted with greater efforts,and the construction of expressway also faces problems such as shortage of funds.Therefore,public REITs financing provides timely financial support for the development of the highway and becomes an important tool for the sustainable development of the project.This paper selected the Huaxia Yuexiu Expressway public REITs project for analysis and research.Firstly,it introduces the relevant theoretical basis and then combs the relevant information of domestic and foreign respectively at the infrastructure level and the current development of our highway.Then it introduces the basic information of the project and the adaptation point of the highway project and public REITs financing.Finally,through the analysis of project financing motivation and project financing risk,the paper explores the four influencing factors of highway REITs,including capital demand and economic development.In terms of project financing risk,KMV model and income method valuation model are used for quantitative analysis of enterprise default risk and asset value assessment risk respectively.Through the default distance of Yuexiu Traffic in the past six years,the default trend of the project is speculated,and the default risk is finally assessed.In addition,the asset value appreciation calculated by the income method can make up for the part of the value reduction due to the cost method,so it is speculated that the project asset evaluation risk is under control.Finally,at the end of the analysis of the project is summarized,and the relevant suggestions are put forward.