Home » Trillion market welcomes major benefits!The latest interpretation of the five major institutions of public funds has focused on talents and project reserves.

Trillion market welcomes major benefits!The latest interpretation of the five major institutions of public funds has focused on talents and project reserves.

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  Big news for REITs!

On May 25, the State Council’s document No. 19 “Opinions on Further Revitalizing Existing Assets and Expanding Effective Investment” proposed to further revitalize existing assets and encourage the issuance and listing of more REITs projects, which means that the legalization process of REITs will be accelerated, and the domestic REITs market will be to a more mature stage.public offeringfundIt is generally believed that the release of this document means that the state has fully recognized the role of publicly offered REITs in revitalizing existing assets and expanding effective investment, and has placed high expectations.

Policies related to the domestic REITs market have been continuously introduced. Prior to this, the Shanghai and Shenzhen Stock Exchanges released the “Guidelines for Newly Purchased Infrastructure Projects for Publicly Offered REITs” on April 15 to solicit opinions on the rules for the expansion of infrastructure REITs.

Whether it is a new issue or an expansion,China Asset ManagementBosera FundPing An Fund,CCB FundSoochow FundPublic offeringfund companyin acceptingbrokerageChinese reporters said in an interview that the company attaches great importance to the work related to public REITs, and actively prepares for the expansion of public REITs and the preparation of new projects.

  Chinese reporters from securities companies also learned from recruitment websites that many public fund companies have begun to focus on talent reserves. Since the beginning of this year, public fund recruitment of REITs-related positions has increased significantly.

  State Council encourages more REITs to issue and list

What positive statements does the State Council Circular 19 have on infrastructure REITs? China AMC, Bosera Fund, Ping An Fund, CCB Fund and Soochow Fund made an in-depth interpretation of it.

China Asset Management stated that 1. The fundraising mechanism will help improve the institutional construction of my country’s public REITs market, accelerate the continuous entry of high-quality stock infrastructure assets into the capital market, and effectively enhance the scale and attractiveness of public REITs products. 2. my country’s infrastructure REITs pilot projects require clear ownership and complete compliance procedures in the early stage. Due to historical reasons, some high-quality stock projects need to complete or improve relevant procedures according to regulations. The solution pointed out an important direction and helped to promote the efficient submission of relevant projects for approval. 3. Drawing on the development experience of REITs in mature international markets, establishing the market position of REITs through legislation, and further optimizing the product structure and tax arrangements, will escort the development of REITs and meet the long-term interests of investors and other market participants. 4. High-quality and stable underlying assets are the core value of REITs products and the basis for the healthy development of the market. For projects to be issued infrastructure REITs, the State Council, while proposing to “further improve the efficiency of recommendation and review”, emphasizes that “it should comply with the relevant requirements of major national strategies, development plans, industrial policies, investment management regulations, etc., ensure the quality of projects, and prevent the market. Risks”, which provides important guidelines and requirements for relevant parties in the market to screen and promote project issuance.

Bo ShiChina Merchants ShekouHu Haibin, manager of the REIT Fund of the Industrial Park, said that the State Council Document No. 19 is a huge programmatic document for infrastructure REITs. The main positive factors are: First, the State Council issued a document clearly to promote the healthy development of infrastructure REITs, and the issuing unit is higher than the previous state. The document level of the National Development and Reform Commission, the China Securities Regulatory Commission and other ministries and commissions; the second is innovative and breakthrough, such as projects that play an important role in maintaining the stability of the industrial chain and strengthening people’s livelihood security, the income concentration and operation period can be further flexibly and reasonably determined. Real estate issuance REITs is a major support. Another example is the implementation of fiscal and taxation financial policies, and tax planning in asset revitalization has also given certain support.

Masai, the fund manager of Ping An Fund, said that infrastructure REITs are an important starting point for further revitalizing existing assets and expanding effective investment. They are of great significance to forming a virtuous cycle of existing assets and new investment, broadening social investment channels and reducing corporate debt levels. The release of the “Opinions” is a major policy benefit for infrastructure REITs, and will strongly promote the rapid and healthy development of infrastructure REITs.

The development of the infrastructure REITs market is mainly about new issuance and expansion, and the “Opinions” clarifies both aspects. The “Opinions” propose that for projects that play an important role in maintaining the stability of the industrial chain and supply chain and strengthening the protection of people’s livelihood, under the premise of meeting the issuance requirements, meeting market expectations, and ensuring that risks are controllable, the operation period can be further flexibly and reasonably determined. income concentration, etc. If the issuance of infrastructure REITs by a state-owned enterprise involves the non-public agreement transfer of state-owned property rights, it shall be reported to the state-owned assets supervision and administration agency at the same level for approval as required. Operation period, income concentration, transfer of state-owned assets, etc. are the key issues that need to be solved in the issuance and listing of REITs. The release of the “Opinions” will help improve the efficiency of REITs project recommendation and review, and accelerate the promotion of REITs project issuance and listing.

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At the same time, the “Opinions” make it clear that it is necessary to establish and improve the fundraising mechanism and explore the establishment of a multi-level infrastructure REITs market. Research and advance REITs-related legislation. The establishment of the fundraising mechanism and the improvement of laws and regulations provide institutional guarantees for the long-term and healthy development of infrastructure REITs.

CCB Fund believes that the release of the State Office No. 19 document is an affirmation of the pilot work of my country’s public REITs, and an action plan to continue to promote the healthy and efficient development of the public REITs market in the future.

First of all, the document mentions that it is necessary to “further improve the efficiency of recommendation and review, and encourage the issuance and listing of more eligible infrastructure REITs projects”, indicating that publicly offered REITs have played a good role in conforming to national policy orientation and helping economic transformation and development, which is conducive to Enterprises revitalize existing assets and obtain incremental equity funds to meet the capital needs of infrastructure projects with a long construction and operation cycle, and to improve the efficiency of capital use. We also expect more high-quality infrastructure projects to complete the “listing of assets” through the public offering of REITs.

Secondly, the document mentioned that “for projects that play an important role in maintaining the stability of the industrial chain and supply chain and strengthening people’s livelihood security, under the premise of meeting issuance requirements, meeting market expectations, and ensuring that risks are controllable, the operating period can be further flexibly and reasonably determined. , income concentration and other requirements”, we believe that this will further increase the enthusiasm of the original stakeholders to participate in the public offering of REITs, and accelerate the feasibility of issuing public offerings of REITs for various infrastructure assets.

Finally, “establishing and improving the fundraising mechanism and exploring the establishment of a multi-level infrastructure REITs market” can promote listed public offering REITs on the basis of stable operation, and continuously increase the product scale through fundraising, fully demonstrating the manager’s project operation ability and The capital operation ability further highlights the growth and investment value of publicly offered REITs.

Soochow Fund said that in general, the spirit of the document supports the accelerated development of infrastructure public offering REITs to a large extent.

First, the document highlights the positioning and role of publicly offered REITs. From the perspective of the key direction of revitalizing existing assets, the main positioning of the document for key areas and key regions is highly matched with the policy orientation of the pilot stage of public REITs. The public offering of REITs is listed in the document as the primary way to optimize and improve the revitalization of stock assets, and the legislative work related to REITs will also be researched and promoted. It can be seen that the state has fully recognized the role of publicly offered REITs in revitalizing existing assets and expanding effective investment, and placed high expectations.

Second, the pace of listing is expected to be further improved. On the one hand, the document requires to improve the efficiency of recommendation and review. On the other hand, for important projects involving the stability of the supply chain and industrial chain and the protection of people’s livelihood, the cultivation cycle and difficulty of cultivation can be shortened to a certain extent. For the review of operating years and income concentration, It can be relatively flexible under the premise of meeting market expectations and controlling risks.

Third, focus on higher requirements and far-reaching development significance. The document calls for establishing and improving the fundraising mechanism and exploring the establishment of a multi-level infrastructure REITs market. The document puts forward separate requirements for a certain business link of REITs, which shows the importance of fundraising for the development of REITs and the importance of REITs for realizing a virtuous circle of infrastructure stock assets and incremental investment. The document first proposed the establishment of a multi-level market for REITs, which also indicates that the future development of REITs will extend to different levels of the market along different paths of placement, public expansion, and targeted expansion. Its flexibility and development space are huge. .

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Fourth, provide a series of supporting policy support, gradually form a system and legislate in a timely manner. In the part of promoting the healthy development of REITs, the document clearly states that if the issuance of infrastructure REITs by state-owned enterprises involves the transfer of state-owned property rights by non-public agreement, it shall be reported to the state-owned assets supervision and administration agency at the same level for approval according to regulations. For the important common problems faced by the issuance of REITs by state-owned infrastructure, here are some solutions. In addition, in terms of increasing policy support for the revitalization of stock assets, the document requires the exploration and formulation of reasonable solutions and active implementation of difficult issues such as property rights definition, formalities supplementation, and procedural efficiency, and specifically proposes to implement detailed tax policies to support infrastructure REITs. With the continuous deepening of the REITs pilot program, various difficult problems plaguing the market are expected to be continuously corrected, the legalization process of REITs will also be accelerated, and the domestic REITs market will also develop to a more mature stage.

The document has also made arrangements for the effective use of recovered funds, risk prevention, and strengthened operations. Many aspects are highly compatible with the inherent requirements of REITs, reflecting the exemplary role and leading significance of REITs in revitalizing stock assets and expanding effective investment.

  The public REITs market will be a trillion-level track in the future

On May 17, 2021, the first batch of 9 infrastructure public offering REITs products were approved, and in June 2021, the first batch of infrastructure public offering REITs were successfully listed on the Shanghai and Shenzhen Stock Exchanges.

As of the latest, a total of 12 public REITs under 11 public fund companies have been listed one after another, and the fundraising scale has reached 45.812 billion yuan. It is worth noting that this year’s first launch of HuaxiaCCCCREIT has attracted more than 150 billion yuan in total, and the proportion of public offerings is only 0.84%. Investors are enthusiastic about it.

China’s infrastructure public offering REITs have a lot of room for future development. As an important pole of global major asset classes, institutions generally predict that the potential scale of China’s public REITs market is more than one trillion yuan. REITs originated in the United States in the 1960s,CITIC Construction InvestmentsecuritiesResearch data shows that as of the end of 2020, a total of 43 countries or regions in the world have introduced REITs systems, and the total market value of the global infrastructure public REITs market has exceeded 2 trillion US dollars, while the latest domestic infrastructure public offering REITs The scale is not large.

In fact, REITs have attracted the attention of domestic financial regulators and financial institutions for a long time, and there are also attempts to make products similar to REITs. Due to various reasons, infrastructure public offering REITs have only been issued and listed in recent years.

  Public funds actively deploy REITs

Since the beginning of this year, policies related to REITs have been continuously introduced. In addition to financial institutions, the successful operation of the public REITs market has made more and more government departments, original stakeholders and project companies interested and actively participating, hoping that more high-quality projects will be issued and listed.

A Chinese reporter from a securities firm noticed that many public funds are vying to recruit positions related to public REITs, and the positions of investment managers, operations and project managers related to public fund REITs on the recruitment website have increased significantly.

  China AMC, Bosera Fund, Ping An Fund, CCB Fund, Soochow Fund and other public fund companies said in an interview with reporters that the company attaches great importance to the work related to public REITs, and actively prepares for the expansion of public REITs and the preparation of new projects.

China Asset Management stated that the company attaches great importance to the work related to public REITs. In 2015, the company set up a professional REITs team to carry out REITs research reserves. The Infrastructure and Real Estate Investment Department has been established, with more than 10 professional fund managers and investment researchers, responsible for REITs project investment and post-investment operations. The core members of the team are from well-known private equity fund managers in the field of infrastructure and real estate at home and abroad,InsuranceAn asset management and operation management institution with years of experience in infrastructure and real estate equity, mezzanine/debt investment and operations management. In addition to a professional investment and operation team, China AMC has built a full-process public REITs operation support system. The company has set up REITs specialists in the research and development department and fund marketing department, playing an important role in project contracting, execution, product submission, and sales. . At the same time, the company has a mature middle and back office support system and management system to ensure the stable and efficient operation of REITs. On the expansion of public REITs, China AMC is actively studying relevant guidelines and communicating with relevant institutions.

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Bo ShiChina Merchants ShekouWang Qiaochu, manager of the REIT fund in the industrial park, said that on April 15, the Shanghai Stock Exchange solicited opinions on the expansion rules of infrastructure REITs. Bosera Fund is waiting for the specific instructions of the expansion guidelines to carry out the corresponding expansion work. Always maintain communication about follow-up work arrangements.China Merchants ShekouThe production park has a rich asset reserve, including assets under construction, opening, and mature stages. Continuous planning and research will inject suitable mature assets into Shekou Production Park REIT. China Merchants Shekou and Bosera will continue to work together to find suitable assets that can be injected into REITs. The scale of REITs will expand and develop healthily, and support the REITs in production parks to expand the scale of platform management through market-oriented means.China Merchants Shekou launched successivelyChina Merchants Commercial Real Estate TrustWith the dual REITs platform of Shekou Industrial Park, mature assets can be injected into the REITs platform while retaining the right of operation and management, which can improve the liquidity of the REITs platform, help China Merchants Shekou reduce the proportion of heavy assets, and effectively leverage the resource advantages of industry + finance. The industry-finance linkage method stimulates the vitality of the property holdings and forms an industry-finance linkage system for the whole life cycle.

Masai, fund manager of Ping An Fund, said that the expansion of REITs is one of the active management capabilities at the REITs level. The value-added of successful REITs depends not only on the fund manager’s ability to operate existing assets, but also on the fund manager’s ability to expand and raise high-quality assets of the same type. Steady growth.

Ping An Fund attaches great importance to the public offering REITS business. At present, it has built a professional team covering the whole process of project execution, basic asset investment, and operation, and has also made sufficient preparations for the mid- and back-end departments. Ping An Fund will continue to rely on the comprehensive financial services advantages of Ping An Group, give full play to the synergy effect, deeply cultivate the field of infrastructure public offering REITs, take advantage of scale, reduce management costs, and improve investor returns.

CCB Fund stated that the company will actively reserve CCB in accordance with the requirements of the fundraising policy.ZhongguancunREIT’s high-quality scalable assets, starting from asset selection, business docking, system construction, etc., make preparations for the expansion of public REITs.

Soochow Fund stated that the company attaches great importance to the promotion of the fundraising work of “Soochow Suyuan Industrial REIT”, is actively studying the relevant policies and rules for fundraising, and simultaneously strengthens communication with exchanges, parks and investors, and will follow regulatory requirements and parks. It is planned to speed up the expansion of fundraising.Recently, Soochow Fund andSoochow Securities, Suzhou Yuanlian Fund, as a consortium, won the bid for the Suzhou Rail Transit Public Offering REITs project, and plans to use the stations, sections and tracks included in Suzhou Rail Transit Line 1 to enter the pool and advance related work.At the same time, Soochow Fund is also working withSoochow SecuritiesTogether to promote multiple orders involving industrial parks andUtilitiesIt is a kind of public offering REITs project, and strives to have more high-quality and rich types of REITs products facing the market and providing them to investors in the future.

(Article source: Brokerage China)

(Original title: The trillion-dollar market welcomes major benefits! Public funds have focused on talent and project reserves, and the latest interpretation of the five major institutions is here)

(Editor in charge: 92)

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