fufortunesmegawaysslot| Vigorously develop REITs business and serve the high-quality development of the real economy

Log in to Sina Finance APP to search [Xinpi] to see more evaluation levels.

Some opinions on strengthening Supervision and guarding against risks and promoting the High-quality Development of Capital Market issued by the State Council in April 2024 (hereinafter referred to as the new "National Nine articles")FufortunesmegawaysslotTo "promote the high-quality development of the bond and real estate investment trust (REITs) market". Real estate investment trusts (hereinafter referred to as "public REITs") transform mature infrastructure projects into publicly traded shares of public REITsFufortunesmegawaysslotIt can effectively connect the real economy and the capital market. On the one hand, it can provide enterprises with channels to invigorate the stock of assets, promote equity investment, optimize the structure of assets and liabilities, and build a virtuous circle of investment, financing, management and withdrawal. On the other hand, it provides stable medium-and long-term investment targets for the capital market, attracts the active participation of social capital dominated by medium-and long-term funds, and injects fresh water into the high-quality development of the capital market. it is of great and positive significance for the capital market to promote the high-quality development of the real economy and to build a new development pattern.

Since the REITs pilot project of infrastructure public offering in China was officially launched in April 2020, the relevant systems and rules have been continuously improved, the enthusiasm of enterprises to participate has become higher and higher, and investors have a deeper understanding of the products. China Merchants Securities attaches great importance to REITs business, active layout, is the first batch of REITs IPO and the first batch of expanded participants. Combined with practice and research, the company puts forward further thoughts and suggestions on promoting the high-quality development of REITs business from three aspects: promoting quality and expansion, improving asset investment and transportation management capacity, and improving ecological construction.

Speed up the promotion of REITs market quality and expansion

Compared with the mature overseas REITs market, China's public offering REITs market is still in its infancy. By the end of April 2024, a total of 36 public REITs products had been issued in China's public REITs market, of which 4 projects had been expanded, with a cumulative offering size of 118.8 billion yuan, with an average of 32.Fufortunesmegawaysslot99 million yuan, the total market volume is small, and it has not yet reflected the listing platform attribute and leading effect of public offering REITs. In comparison, as of February 2024, there were a total of 138total equity REITs in the US REITs market, corresponding to a total market capitalization of $1.2968 trillion, with an average market capitalization of 93.Fufortunesmegawaysslot9.7 billion US dollars, the leading scale effect is significant. PLD, AMT and EQIX, which rank among the top three by market capitalization, have a market capitalization of $123.1 billion, $92.7 billion and $83.1 billion, respectively. By the end of April 2024, the total market capitalization of 11 REITs in Hong Kong REITs market was HK $125.6 billion, of which the market capitalization of 0823.HK was HK $86.448 billion, accounting for 68.81 per cent of the total market capitalization of Hong Kong REITs market.

As far as China's public offering REITs market is concerned, in terms of the scope of assets, the scope of infrastructure assets allowed by our current policy has been relatively comprehensive, but there are still a large number of asset classes that have not yet been broken, such as new infrastructure, all kinds of municipal infrastructure and other fields, which are expected to make a substantial breakthrough in the near future. In terms of market volume, China's REITs market is still in its infancy, and the total market volume is relatively small. In the next stage, we should focus on encouraging companies with rich asset reserves, wide coverage areas (high urban energy levels), influential enterprises to issue public REITs and support the expansion of high-quality public offering REITs that have been listed, so as to promote the public offering REITs with excellent asset acquisition and operation management capabilities to be better and stronger. So as to better support the high-quality development of the real economy.

Asset investment and operation management capacity

Is the foundation of sustainable and high-quality development.

In the field of infrastructure and real estate investment, "cheap and well managed" are the two core value creation capabilities.

Although public offering REITs is a passive asset holding carrier, in essence, it should be a listing platform with unique vitality, with assets in and out, purchase assets with "performance-to-price ratio" and improve the effectiveness of asset management through excellent operation and management capabilities, so as to bring asset value-added income and stable distribution income for investors.

Take the industry leader in Hong Kong's REITs market (0823.HK) as an example. In the last two fiscal years, the average distribution rate of REITs was 8.63 per cent and 7.75 per cent respectively, and the valuation of its portfolio rose by 6.9 per cent and 11.6 per cent respectively. The average valuation premium on asset sales was as high as 32 per cent in the most recent financial year of asset sales. With its excellent investment and transportation management capacity, by the end of April 2024, the price of the secondary market has risen by 564.90% since its listing.

At present, in the REITs system of public offering in China, the participants focus on the location, compliance and operational stability of the underlying assets, but pay relatively low attention to the asset investment and acquisition ability, the real willingness to raise funds and the operation and management ability of the sponsors and operation management institutions. Long-term investment in a public offering REITs product is not only the investment in the underlying assets, but also the ability to invest in the enterprise.

In the stock era, asset investment and operation management capacity is an important supporting basis to ensure the sustainable and high-quality development of public REITs products and entity enterprises.

Ecological Construction of Public offering REITs

It is helpful to specialize the division of labor and return to the position to do one's duty.

Public offering REITs in China involves a variety of main roles, including sponsors and original rights holders, operation and management institutions, fund managers, financial advisers, fund market makers and all kinds of investors. As far as promoters and original rights holders are concerned, they are not only the main producers and distributors of assets, but also as important strategic investors, bound with the interests of public REITs investors, and continue to generate or purchase stable and compliant assets is their core responsibility. The operation and management capability of the operation management organization is the foundation for the public offering REITs to become bigger and stronger, which will help the public offering REITs products to break through the chain of "reasonable expansion-operational quality improvement-high distribution-value enhancement", and create the brand effect of REITs light asset operation.

As far as fund managers are concerned, as trustees of public offering REITs products, they need to fulfill their duties and communicate with investors in a timely manner. In particular, they should strengthen the overall planning ability of operation and management institutions, so as to better perform their supervision duties.

As financial advisers to REITs, securities companies should effectively perform their duties such as due diligence, plan design, and issuance declaration. In addition, securities firms with public fund licenses can also serve as fund managers and plan managers, and provide full life cycle services for public offering REITs in terms of investment research, investment, market making, etc. Regarding the bulk transactions of publicly offered REIT shares, it is recommended that stock exchanges further improve the active, convenient and relatively transparent bulk trading platform to create necessary prerequisites for institutional investors to make flexible investment.

Looking to the future, we believe that with the steady advancement of multi-level REIT market construction and the joint efforts of all parties in the REIT market, my country's REIT market will surely show a good trend of long-term steady development. China Merchants Securities will actively leverage its professional advantages in the fields of investment banking, investment research and investment to help my country's REIT market more effectively promote the development of the real economy and the construction of a modern industrial system, and embark on a path that not only draws on mature market experience and laws, but also conforms to China's national conditions. The road to high-quality development.