The first batch of public offering REITs pilot products was released as early as April, and the trillion public offering REITs market once again attracted attention.

Wang Bufang, secretary general of the securitization REITs research group of the State Council Development Research Center, said recently that the first batch of pilot products of publicly offered REITs will be launched in the near future. The first batch of pilot products are not one product, but a batch of products. Previously, the Shanghai Stock Exchange convened a meeting of fund companies and brokers on the preparations for the public offering of REITs. The trillion-dollar public offering REITs market has once again attracted attention.

The first batch of public offering REITs pilot products will be launched soon, and the relevant details have yet to be finalized.

On the afternoon of March 3 1, at the roundtable forum of the third annual global investor conference on structured credit and asset securitization, Wang Bufang said that the first batch of public offering REITs pilot projects are expected to be launched in the near future. Wang Bufang introduced that the first batch of pilot cities of the CSRC include Beishangguangshen, Xiong 'an and Hainan; In terms of underlying assets, long-term rental apartments, infrastructure assets, public service facilities assets, operating properties and other assets recognized by the CSRC are all options.

Wang Bufang introduced that from the beginning of exploration to the present, the preparatory work for public offering REITs has gone through more than ten years. Around the Spring Festival this year, the CSRC began to make arrangements, hoping to launch a pilot program of public offering REITs as soon as possible. In March, relevant people made a lot of communication between the CSRC and the Exchange. If nothing happens, the first pilots will come out in the near future.

At the third annual meeting of global investors on structured credit and asset securitization, Chen Chunyan, secretary general of China Asset Management Association, said that asset securitization business serves the real economy. "As long as it is conducive to the real economy and supply-side reform, we will definitely advance." At the same time, in the process of promoting these innovations, the regulatory authorities will also pay attention to preventing risks.

Recently, the Shanghai Stock Exchange also convened a meeting between fund companies and brokers to discuss the preparations for the public offering of REITs. People close to the exchange said that the public offering of REITs is a product innovation that the Shanghai Stock Exchange is highly concerned about.

There are indications that the preparations for public offering of REITs are gradually entering a mature stage. As for the specific release time of the first batch of pilot products, there is no consensus at present. Some people think that the first batch of pilot products will be released soon in April.

Operation mode is Public Offering of Fund +ABS.

According to people close to the exchange, the operating mode of public offering REITs is Public Offering of Fund+Asset-backed Securities (ABS), which is the understanding reached in the industry, that is, the carrier of products is Public Offering of Fund, and the underlying assets exist in the form of ABS. Professionals said that under the current institutional framework, Public Offering of Fund +ABS model is also a reasonable choice for China to develop public offering REITs.

Talking about the recent public offering REITs meeting held by brokers and fund companies in Shanghai Stock Exchange, a person familiar with the matter revealed that institutions should start looking for projects next, not limited to real estate, but the net income level of the projects should meet the needs of potential investors. "It is not encouraged to take the form of guarantee or differential payment in product design, and it is hoped that fund company brokers will emphasize the rights and interests of public offering REITs when promoting to potential investors".

A person in charge of asset securitization of securities firms explained the reasons for adopting Public Offering of Fund +ABS operation mode: "Public Offering of Fund can't buy a building, ABS can't be publicly issued, and public offering +ABS can be publicly issued or invested in the underlying property assets including real estate assets."

The REITs research report released by Guanghua School of Management, Peking University shows that Public Offering of Fund +ABS model can make full use of the existing rules and mature experience of Public Offering of Fund and ABS market, and can cultivate and develop the management ability of REITs market as soon as possible, which is a reasonable scheme suitable for the current market situation. However, industry insiders said that it is difficult to determine the specific details of the first batch of pilot products, such as what conditions need to be met in terms of investment targets of products. (China Financial Information Network)

On the 30th, Qin Bo, head and executive general manager of asset securitization in the investment banking department of CICC, expressed confidence in the vigorous and orderly development of the asset securitization market in the future, and the launch of public offering REITs attracted much attention, which will have great imagination.

Qin Bo made the above statement at the Third Annual Meeting of Global Investors on Structured Credit and Asset Securitization in China. He believes that asset securitization products have made great progress around real economy services in the past few years.

"We are full of confidence in the vigorous and orderly development of the future market," he said. First, enterprises such as consumer finance serving residents' consumption and financial leasing serving enterprises' financing needs will continue to obtain financing through asset securitization. Second, supply chain finance, accounts receivable securitization will continue to help enterprises achieve the goal of reducing leverage. Supply chain finance ABS will effectively reduce the upstream financing cost of core enterprises, thus reducing the comprehensive financing cost of the real economy. The third is to revitalize fixed assets through REITs, ABS and other products to provide construction funds for infrastructure construction. Fourth, the public offering of REITs has attracted much attention and there is a lot of room for imagination.

Qin Bo believes that the sustained and healthy development of the market is closely related to the participants. On the one hand, participants need to constantly innovate around the needs of enterprises. In the past few years, accounts receivable, supply chain finance, REITs and other products have appeared, which effectively serve the needs of enterprises. Second, risks need to be controlled. Regulators are very familiar with products and markets, and they are also issuing targeted listing guidelines and information disclosure guidelines to guide the market. Third, the types of investors are increasingly rich, and overseas institutions are also paying close attention to this market. (shanghai securities news)

Outlook 20 19: the first year of public offering of REITs

With the continuous occurrence of deleveraging and credit events in the bond market, the risk-return preference of institutional investors has declined overall in 20 18 years. The introduction of new asset management regulations has affected the allocation of bank wealth management investment in stages. At this stage, many ABS product designs rely on issuers. In the past year, most institutional investors paid attention to the issuer's credit, which deviated from the mechanism of ABS attaching importance to basic assets to some extent. Although the successful market-oriented disposal of some underlying assets of existing REITs at the end of the year can boost market confidence to a certain extent and make investors focus on high-quality property assets, it is still a long way to go for most ABS products to truly break away from the main credit, which requires the joint efforts of investment institutions, issuers and intermediaries to improve their capabilities and be diligent and conscientious.

Over the past four years, the accumulation of REITs in Shanghai and Shenzhen Stock Exchanges has successfully covered the main basic property categories in the international REITs market, basically completed the knowledge reserves in the aspects of due diligence of commercial properties, transaction structure, merger and acquisition arrangements, and initially cultivated the issuer and investor markets of REITs. With the government agencies represented by financial supervision departments actively promoting the process of public offering of REITs and fostering market innovation, we have reason to expect that 20 19 will become the first year of public offering of REITs in China, and push the commercial real estate market in China into a new era!

Stock age: the supremacy of asset management ability

"I believe that the China real estate market will develop in a more mature direction in the future." In an interview with China Real Estate Finance, Gan Qishan said that many housing enterprises have gradually moved from the development era to the stock era and asset management era.

This year, the financing pressure of housing enterprises continued to rise, and the financing channels such as banks and trusts were tight, which led to a sharp increase in the demand for debt issuance by housing enterprises. The fiery CMBS market in the past three years reflects the strong demand of housing enterprises for funds. Gan Qishan believes that it is more difficult to issue CMBS, and it will be more difficult for companies with AA rating or below to issue it. The requirements for issuers also tend to pay more attention to the cash flow of assets.

"Can the cash flow of assets guarantee to cover historical expenditures in the next three to five years?" Gan Qishan pointed out that this has strong constraints on housing enterprises and also requires housing enterprises to have asset management capabilities. If CMBS requires stable cash flow of assets, then the real introduction of REITs in the future requires that assets have relatively promising growth potential in the future, including the rental price and the asset price. "This requires asset managers to discover the true value of assets and re-enhance the value of assets through transformation and management." Gan Qishan said.

Regarding the development of REITs in China, Gan Qishan thinks that whenever they are launched, in his view, more attention should be paid to post-investment management, and whether the asset manager has fulfilled the responsibility of enhancing the asset value.

As more and more foreign investors are optimistic about the real estate market in China, Gan Qishan believes that the trend of foreign investment in China assets will continue until last year. "So you will see that foreign funds in the market are still very active, but the real high-quality assets on the actual market can provide a good return on investment, which is relatively lacking, especially in terms of sustainable development." (China Real Estate Finance)

(Clouds grow long and water grows long)