A Case Study Of CICC Xiamen Affordable Rental Housing REITs

The Party’s 20 th National Congress pointed out that the political concept of putting the people first should be thoroughly implemented,and that the people’s affairs are no small matter.The people have long been preoccupied with the housing issue,which has become a significant source of both subsistence and practicality.We should construct a multi-level housing system to address this issue,prioritize renting and purchasing,foster the long-term rental market,and foster the development of affordable rental housing.It is the opinion of this paper that the development of a cost-effective housing system is a fundamental element in resolving the housing issue.Nevertheless,the building of protective housing is not initiated until later,and it is hard to finance.In the past,the financing of domestic housing construction relied on bank credit and government fiscal expenditure,but these two methods have problems such as high cost,easy to cause government debt risks,and at the same time,it is difficult to introduce social funds into government-subsidized housing financing,and public REITs can solve this problem well.The "CICC Xiamen Closed-end Infrastructure Securities Investment Fund for Affordable Rental Housing" is one of the first batch of affordable rental housing REITs projects in China,and also a bold attempt to include affordable rental housing in the scope of REITs pilot.This paper aims to analyze China Finance Xiamen Anju REITs,one of the earliest publicly-traded REITs.Utilizing literature analysis,case study,and comparative analysis techniques,it will initially examine the current state and difficulties of affordable rental housing in China,followed by the introduction of cases,including the rationale for selecting them,the original owners’ circumstances,and the housing owners’ circumstances.This paper elucidates the analysis viewpoint of four perspectives,including financing motivation,basic assets,financing risk,and the effect of financing,by elucidating the fundamental assets and fund information,thereby providing a foundation for further investigation.An examination of the case is conducted,and the motivation for financing is scrutinized from the three tiers of the nation: the sector,the business,and the enterprise.The financing motivation of the original owner is analyzed from the enterprise perspective.By introducing the Z-value model,the financial condition of the issuer is analyzed to explain the necessity of issuing REITs financing.Then it analyzes the underlying assets,including the tenant’s ability to perform the contract and future cash flow,to judge the quality of the underlying assets.Then,the relevant risks of REITs are summarized.The fund’s performance is finally evaluated,and the financial impact is scrutinized.This paper,based on the analysis results,draws research conclusions and proposes corresponding suggestions for these risks.It is hoped that the case analysis in this paper will offer direction to more affordable rental housing enterprises to raise funds through REITs public offerings in the future.