Analysis On Financing Motivation And Effect Of REITs In China Merchants Shekou Industrial Park

In recent years,as China’s real estate industry has changed from the incremental era to the stock era,the operation and management of stock real estate has become increasingly important.This environment promotes the rooting,germination and vigorous development of REITs in China.In addition,under the background of continuous regulation policy and deleveraging supervision of the real estate industry,the problem of single financing mode and high asset liability ratio of real estate enterprises has been lingering for a long time,which is inseparable from the tradition of real estate enterprises focusing on asset operation and relying on bank loans,and is also related to the lack of financing means.Through the rational use of REITs financing,it is important for real estate enterprises to broaden financing channels Light asset operation and reducing asset liability ratio are of great significance.Moreover,vigorously promoting the development of REITs in China is of great benefit to the sound development of China’s real estate industry and financial industry and the construction of China’s multi-level capital market.Real estate trust and investment funds(REITs)play an important role in promoting national economic development The investment field of is mainly in commercial real estate,rarely involving the field of infrastructure,and there are problems such as high investment threshold and poor liquidity,which does not have the characteristics of real REITs.Infrastructure projects are characterized by large initial investment and slow return,so a large amount of financing is required.In recent years,the lack of financing channels has led to a slowdown in the growth of China’s infrastructure investment.On April30,2020,the China Securities Regulatory Commission and the national development and Reform Commission jointly issued the notice on promoting the pilot work of real estate investment trusts(REITs)in the field of infrastructure,which is of great significance to solve the existing problems in China’s infrastructure field and promote the standardized development of REITs.The industrial park is the priority support area of the public infrastructure REITs pilotThis paper mainly uses the methods of literature research and case analysis to briefly introduce the concept,types,characteristics and related theories of REITs,such as cash flow theory and credit enhancement theory.On this basis,it introduces the case analysis of REITs of China Merchants Shekou Industrial Park.Firstly,it introduces the basic situation of the case,including the important participants of the project,the underlying assets,the transaction structure,etc.Secondly,it further analyzes the case,mainly from the aspects of project motivation,financing effect and so on.The analysis shows that with the encouragement of the policy environment and based on the needs of revitalizing the stock assets,China Merchants Shekou has adopted the financing mode of REITs,achieved the objectives of revitalizing the stock assets and light asset operation,and increased a large amount of working capital,which is conducive to the expansion of business layout of enterprises.This paper will analyze the Financing Motivation from three perspectives: macro,industry and enterprise,and analyze the financing effect of China Merchants Shekou REITs products successfully issued in China and with certain typical characteristics from the aspects of market performance,enterprise financial situation and financial risk,so as to draw a conclusion and provide feasible suggestions for enterprises with relevant financing needs.