On October 15, the Beijing 2021 Infrastructure REITs Industry Development Conference was successfully held. The conference was co-sponsored by Beijing Local Financial Supervision Administration, Beijing Development and Reform Commission, Beijing Regulatory Bureau of China Securities Regulatory Commission, Shanghai Stock Exchange and Shenzhen Stock Exchange. The People’s Government of Dongcheng District, Beijing and China International Finance Corporation Joint stock limited company. Relevant government officials, domestic industry experts, original stakeholders, representatives of enterprises, project managers, professional institutions and investors attended the conference. The meeting was presided over by Huo Xuewen, Secretary of the Party Leadership Group and Director of the Beijing Local Financial Supervision Administration, with the theme of “New Practices and New Ecology of Infrastructure REITs”, summarizing the practical experience of infrastructure REITs and discussing the overall industrial ecological development.
Discuss the industrial ecological development of infrastructure REITs
The first 9 pilot projects of infrastructure REITs were successfully listed in June 2021. They received positive feedback from the market and marked another milestone in the development of China’s capital market. Since the first batch of pilot projects landed steadily, the pilot work of infrastructure REITs has continued to advance. Recently, three new projects have been formally declared on the exchange. At the same time, the pilot area and the scope of assets are also steadily expanding, and the pilot area is further expanded to the whole country. Energy infrastructure, affordable rental housing and other infrastructure in line with the national macro development strategy have been included in the pilot scope.
Judging from the performance of the secondary market, the configuration value of infrastructure REITs has gradually become prominent. In the past 4 months since listing, the market price of REITs has gradually become rational and return to the origin of value after a short period of fluctuation in the initial stage of listing. As of October 14, the prices of the 9 REITs have all returned to above the issue price, with an average cumulative increase of more than 10%. Market trading activity has gradually increased, with an average daily turnover rate approaching 2%, maintaining high market liquidity, highlighting its asset allocation value as a new large-scale investment product with medium risk and medium return.
Beijing’s outstanding performance in the first batch of pilot projects was in line with last year’s conference’s expectation for the high-quality development of the infrastructure REITs industry in Beijing. This conference conducted in-depth discussions on the industrial ecological development of infrastructure REITs.
Zhou Jinxing, deputy secretary of the Beijing Dongcheng District Party Committee and Acting District Mayor, pointed out in his speech that under the guidance of Beijing’s “12 REITs”, Dongcheng District has taken the lead in introducing a regional landing policy. In the future, Dongcheng District will introduce several measures to support the development of the REITs industry, provide special support to the original stakeholders who have successfully issued REITs products, provide financial support to the REITs issuance and asset management and operation institutions settled in Dongcheng, and provide talent settlement subsidies for REITs industry talents. , Medical security and other special services. At the same time, it will implement the three-year action plan for the high-quality development of the financial industry in Dongcheng District, continuously optimize the business environment and space resources, and build Dongcheng into a highland for the development of REITs.
Promote the high-quality development of the REITs industry
At the conference, from the perspective of policy requirements and professional fields, various regulatory agencies and industry experts deeply analyzed the significance of the first batch of infrastructure REITs pilots, and proposed how to do REITs under new practices and how to promote the high-quality development of REITs under the new ecology. Suggestions.
Chen Fei, director of the bond department of the China Securities Regulatory Commission, said in a keynote speech that REITs are an important part of the capital market to help build a new development pattern. Under the current background of constructing a new development pattern, the core of enhancing the hub function of the capital market is to guide all kinds of factor resources to gather in more efficient and dynamic areas and stimulate the inherent potential of economic growth. He suggested that the improvement and development of the small ecosystem of REITs should adapt to the large ecosystem of macroeconomic development. The direction of REITs should be closely linked to the national strategy, and continue to promote the implementation of pilot projects. Under the guidance of new development concepts, continue to promote REITs projects that fit the implementation of major national strategies such as green development, low-carbon transformation, and technological innovation, and strive to support operations in related fields. Mature infrastructure assets with stable cash flow and high market recognition rely on REITs to realize equity financing, steadily expand the pilot scale, and form a good demonstration effect.
Luo Yanjun, deputy director of the Fund Utilization Department of the China Banking and Insurance Regulatory Commission, said that in the entire first batch of 9 projects,insuranceFunds participated in the investment of 8 projects.Investment infrastructure REITs areinsuranceThe need for funding to serve the national strategy isinsurancefundFor long-term asset allocation needs, pragmatic and effective measures will be taken to support insurance institutions to participate in infrastructure REITs. “In the early stage, we cooperated with the China Securities Regulatory Commission to clarify the investment specifications of insurance funds. In the next step, we will release regulatory documents as soon as possible, and at the same time strengthen policy guidance, support insurance funds to increase the impact of insurance funds on transportation and water conservancy through infrastructure REITs, debt, and equity. , Energy, ecological and environmental protection and other infrastructure fields to serve the high-quality development of the economy.” Luo Yanjun said.
Jia Wenqin, director of the Beijing Securities Regulatory Bureau, said that 3 of the first 9 REITs pilot projects were from Beijing, covering a variety of asset types. At the same time, Beijing intermediary agencies also participated in the pilot work in depth and accumulated valuable practical experience. In order to continue to promote the pilot work of infrastructure REITs, one is to speed up the improvement of the system and rules, and to conduct a review and evaluation of the first batch of project recommendations, review and listing, and to improve the system and rules; the second is to speed up the construction of a good industrial ecology. In the next step, the Beijing Securities Regulatory Bureau will play the role of the capital market in supporting key areas, escort the long-term and healthy development of the REITs market, and do a good job in the timely transmission and communication of policies.
Huang Linzhi, the second-level inspector of the Beijing Municipal Development and Reform Commission, said that local governments must combine the understanding of the asset base with the focus on key projects, the establishment of an institutional system and the resolution of individual problems, and the extensive promotion and training of REITs. Combine professional docking and communication.
Li Hui, member of the Party Committee and Deputy General Manager of the Shenzhen Stock Exchange, said that the Beijing REITs industrial policy clearly established the “leading group for the development of infrastructure REITs”, which is a good example of a one-stop docking service mechanism. He also suggested that further exploration of the industry-finance integration mechanism can be further explored to increase the enthusiasm of industrial enterprises to participate, research and explore the training of professional REITs managers, and promote the efficient operation of REITs products. The Shenzhen Stock Exchange will promptly summarize the first batch of pilot work experience, consolidate the results of the pilot, comprehensively consolidate the system foundation, optimize the mechanism design, carry out market cultivation, and improve supporting policies.
Duan Dongxing, deputy director of the bond business department of the Shanghai Stock Exchange, stated that with the official listing of the first batch of five products on the Shanghai Stock Exchange on June 21, the SSE’s infrastructure public offering REITs pilot work has achieved the “four stability”-that is, stable listing, stable trading, and stable operation. , Stable expectations, the effect of industrial agglomeration has initially appeared. In the next step, the Shanghai Stock Exchange will promote the normalized supply of projects, promote the pilot REITs of new infrastructure assets such as energy infrastructure, housing leasing and cultural tourism, improve the supporting rules for the expansion of REITs, continue to promote the optimization of systems and mechanisms, and continue to improve serving the real economy and national strategies. Ability and level.
Meng Hao, director of the market development department of the National Equity Exchange Corporation, pointed out that the establishment of the Beijing Stock Exchange is essential to improve the multi-level capital market system and promote high-quality economic development. The Beijing Stock Exchange is looking forward to continuously enriching its business system and product system in the future under the support and guidance of the China Securities Regulatory Commission. “The curtain of the Beijing Stock Exchange is about to begin. We hope that all market players can watch the situation and make plans, not only to take advantage of the trend, but also to take advantage of the trend. The main position of the enterprise.” Meng Hao said.
ZhongguancunZhao Changshan, Secretary of the Party Committee and Chairman of the Development Group, pointed out that infrastructure REITs can effectively solve the problems of industrial park financing and “role overlap” in industrial parks, and are important institutional innovations that help industrial parks develop full life cycle management and services.
CICCChief Operating Officer Chu Gang said,CICCHighly agree with the era significance of public REITs to the Chinese economy. With its first-mover advantage, CICC is fortunate to have achieved a number of market leaders in the first batch of REITs: CICC is the only investment bank in the industry that has completed two pilot projects, and the two issuance scales accounted for 32% of the first batch of overall scale; In the batch of 9 pilot projects, CICC acted as the market maker for 8 orders, and is the investment bank with the most market participation in market making projects. CICC has also participated in the strategic investment of 5 pilot REITs, and is the investment bank with the largest scale of strategic market placement.CICCWhile participating in REITs, actively promote REITs products, tell good investment stories, earnestly explore the brand-new topic of REITs fund management, and initially explore the practical operation plan of “professionals do professional things” under the REITs structure.
“REITs have new business, long chain, multiple roles, complex structure, deep integration with industry, and wide coverage of supporting policies. It is necessary to accelerate the improvement of the market system and form a long-term sustainable industrial chain ecology. We look forward to working together to build a government and original rights A good ecological environment where people, intermediaries, and investors participate together.” Chu Gang said.
Mechanism construction and market development
The meeting held two roundtable discussions between original stakeholders, professional institutions and investors.CICC, CICC Fund,First environmental protection, AVIC Fund, Han Kun Law Firm, DTZ, PricewaterhouseCoopers, China Insurance Investment,Industrial BankEverbrightFinancial management, ICBC Wealth Management, Taikang Assets and other institutions participated in the discussion.
In a round table forum discussing the experience of the first pilot projects,CICCCi Yanyi, head of the fixed income group of the Investment Banking Department, briefly reviewed the first batch of public REITs and the performance of the secondary market, and appealed to REIT practitioners to not forget their original aspirations, be brave in practice, and jointly care for the good ecology of REITs. Hao Chunmei, Chief Accountant of Beijing Capital Eco-Environmental Protection Group Co., Ltd. reviewed the price performance of the listed companies and REITs platforms, and summarized the significance of the two platforms to the company, and expressed that it promotes the development of the water industry and strives to be a contributor to the construction of a beautiful China. Positive willingness. Song Xin, general manager of the Real Estate Investment Department of AVIC Fund, introduced the running-in and exploration of external management agencies and fund managers on the Shougang Green Energy Project, expressing confidence in the future REITs to continue to grow and become stronger. Fang Rong, a partner of Han Kun Law Firm, mentioned that the current REITs structure is the best solution for realizing the launch of REITs as soon as possible. From a professional legal perspective, he proposed mitigation measures for asset risks and product risks.Shenzhen Dade Lianghang Landreal estateHu Feng, senior director of Valuation Co., Ltd. believes that the current supporting system of REITs has solved the problems of who will do the evaluation, what method will do the evaluation, and when the evaluation will be done. The next step is to pay more attention to the reasonableness of the valuation. Xue Jing, a partner of PricewaterhouseCoopers Zhongtian Certified Public Accountants, mentioned that the different structural designs of REITs will have different financial impacts. Whether to consolidate and whether the financing amount after consolidation can be recognized as equity attracts public attention. Looking forward to the optimization of the supporting system Determine financial standards to help the sound development of REITs.
In the roundtable session discussing the experience and challenges of the first batch of project investment, Sun Jing, the general manager of CICC Fund, reviewed the issuance and market outlook performance of the first batch of publicly offered REITs, and said that he paid attention to the initial protection of investors’ interests in the project design phase. Xin received positive feedback from the secondary market.CICCZhang Yongcheng, head of the global structuring group of the Fixed Income Department, believes that during the issuance of the first batch of public REITs, the company actively responded to the national strategy of serving the country, vigorously participated in investment and market making, and provided opportunities to enhance the investment value of REITs products from the perspective of the secondary market. Concerns.China Insurance Investment Co., Ltd.Company investmentWang Weiwei, the executive director of the team, believes that the characteristics of insurance funds are highly compatible with publicly offered REITs, and that publicly offered REITs will become one of the important assets in the asset allocation of insurance funds in the future. Configuration requirements. Zhang Xiao, managing director of Everbright Wealth Management’s Innovation Assets Department, believes thatBankFinancial management’s investment in publicly offered REITs products is different from traditional fixed-income investments based on entity credit. It is reflected in the investment perspective and logic based on asset value. It is recommended in terms of talent allocation, investment research system and framework, product system, transaction operation support, etc. Be prepared and actively deploy the integrated investment around the entire business chain of REITs. Qian Xiaoquan, General Manager of the Investment Department of ICBC Wealth Management Projects, believes that publicly offered REITs are an important combination of China’s financial supply-side structural reform and investment and financing innovation in the infrastructure sector. Wealth management funds allocate publicly offered REITs as strategic emerging assets and serve as entities. New economic approaches, and discussed and shared opportunities in new areas of REITs such as affordable rental housing. Ouyang Zhipeng, senior investment manager of Taikang Asset Financial Products Investment Department, believes that the investment of insurance funds in publicly offered REITs value the fundamentals of the underlying basic assets, and calls for a good letter and fundraising work to better solve information asymmetry and increase the flow of single products Sexual issues.
The Beijing 2021 Infrastructure REITs Industry Development Conference won unanimous praise from the guests. At a new historical starting point, this conference summarized pilot experience, discussed practical issues, built a new REITs ecosystem, and helped Beijing’s infrastructure REITs industry to achieve high-quality development in the new era and new stage.
(Source: China Securities Network)
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