What is reits Fund?

1.REITs full name: real estate investment trust fund, translated from real estate investment trust fund. Literally, it can be understood as coming from the real estate field. It is a contractual or corporate fund that raises investors' funds by issuing securities, and is managed by a special management organization, and distributes the basic income and value-added income of assets to investors according to the agreed proportion.

2. By definition, REITs are income based on asset management and asset appreciation. Generally speaking, the right to enjoy the income from assets is transferred to investors through trust funds, so the core part is assets. The assets covered by REITs include shopping centers, office buildings, hotels, long-term rental apartments (all of which are the main holding assets of listed real estate enterprises), as well as basic assets such as transportation, industrial property, environment and public facilities (Figure 1). The notices and guidelines issued by CSRC are mainly aimed at REITs in the field of basic assets or infrastructure.

3. The underlying asset types of REITs are simple to say, but at the operational level, the landing of public offering REITs involves not only the search for high-quality targets, but also many contents that need to be finalized in detail, such as structural setting, tax policy and exit conditions, involving a wide range of majors. I think this is also an important reason for taking relatively non-market-oriented infrastructure as a pilot.

1.REITs was born in the United States and flourished in developed countries and regions such as Europe, America, Japan, Singapore and Hong Kong. Up to now, 4 1 countries or regions around the world have introduced REITs system. According to NAREIT statistics, by the end of 20 18, the market value of American REITs was 1 1.236 trillion US dollars, making it the largest market in the world. The market value of REITs in Europe is $229 1 trillion, that of REITs in Asia is $2 1.78 trillion, and that of Oceania is 1.6 1.05 trillion. The development history of REITs at home and abroad can be seen everywhere on the Internet. I don't need to spend a lot of ink to describe it for the time being. Interested readers can go and have a look. Of course, if anyone is interested, I'll tidy it up. Compared with overseas countries, the process of promoting REITs in Chinese mainland is relatively slow. Since its birth in 2002, it has gone through 18 years of exploration before finally welcoming the pilot document of public offering REITs. Although REITs-like products are developing actively, they have never set foot in the field of public offering.

Taking the infrastructure field as a stepping stone this time is actually "the arrow has to be sent on the string":

2. Because of the "COVID-19" epidemic, the high-speed economic growth trend in 10 was broken, and the global epidemic continued to violently impact exports and foreign trade, which had a long-term impact on the economy. This year is the closing year of the "Thirteenth Five-Year Plan", and ensuring economic growth is bound to be the top priority at present;

3. Consumption is sluggish and interest rates are under downward pressure. Secondly, the troika (investment, export and consumption) that drives the economy has to boost the economy by increasing infrastructure investment. The government's financial pressure and leverage reduction pressure exist at the same time, and it is necessary to expand the sources of funds;

4. 19, and the urbanization rate is over 60%. With the second half of urbanization, the real estate market entered the era of stock, and asset operation developed and expanded. Faced with the epidemic and economic downturn, real estate enterprises urgently need to revitalize existing assets and reduce the financial pressure, so the call for public offering of REITs has been overwhelming.

Although the above points seem to be phased needs, they are actually important needs for structural improvement. On the one hand, it improves the government capital structure, on the other hand, it optimizes the capital, operation and asset structure of real estate enterprises. This is the real driving force for the development of REITs, and it is also the "hand" that moves the whole body. The first three points are nothing more than helping build an arrow. I believe that with the help of this pilot project, there will be more room for the development of public offering REITs in the near future.