On June 21, the first batch of 9 infrastructure public offering REITs were officially listed. After the sharp rise after the opening, the trading prices of 9 publicly offered REITs have fallen to varying degrees. As of the close, the turnover of 9 publicly offered REITs exceeded 1.86 billion yuan. Among them, Zhongjin Prologis warehousing and logistics REIT ranked first with a turnover of 305 million yuan, and Hongtu Innovation Yantian Port warehousing and logistics REIT had the smallest turnover with 121 million yuan. In terms of growth, the REIT of Bosera China Merchants Shekou Industrial Park led the increase with a 14.72% increase; AVIC Shougang Biomass REIT came in second with an increase of 9.95% throughout the day; and the REIT of Soochow Suzhou Industrial Park Industrial Park had the smallest increase, only 0.70%.
Sure enough! 9 REITs rose by more than 15%, how to participate? What does the organization look like?
The first batch of publicly offered REITs went public this morning.
Among them, the two REITs of Bosera China Merchants Shekou Industrial Park REIT and AVIC Shougang Biomass REIT increased by more than 10%, that is, the increase exceeded the daily limit of the main board of the A-share market.
The first batch of 9 publicly offered REITs went public, two gains exceeded the A-share main board and one daily limit
Market data shows that the first batch of 9 publicly offered REITs all rose this morning. As of the morning’s close, the REIT of Bosera China Merchants Shekou Industrial Park had increased by 15.58%, and the biomass REIT of AVIC Shougang had increased by 12.32%.
In addition, Wells Fargo’s first water REIT, Zheshang Securities Shanghai-Hangzhou-Ningbo Expressway REIT, and Hua’an Zhangjiang Everbright Park REIT three publicly offered REITs also ranked in the forefront, with an increase of more than 5%.
The overall transactions of the above publicly offered REITs were relatively active. Except for the Hongtu Innovation Yantian Port warehousing and logistics REIT, the other 8 publicly offered REITs had a transaction value of more than 100 million yuan.
What are public REITs? How can ordinary investors participate?
According to the Shanghai Stock Exchange, my country’s public offering of infrastructure securities investment funds (hereinafter referred to as infrastructure public offering REITs) refers to publicly raising funds from social investors in accordance with the law to form fund assets, and holding the foundation through special purpose vehicles such as infrastructure asset-backed securities. Facility projects, standardized financial products that fund managers, etc., actively manage and operate the above-mentioned infrastructure projects, and distribute most of the income generated to investors. According to regulations, my country’s infrastructure public offering REITs are listed and traded on the stock exchange.
Infrastructure asset-backed securities refer to the “Regulations on the Asset Securitization Business of Subsidiaries of Securities Companies and Fund Management Companies” and other relevant regulations, using the cash flow generated by infrastructure projects as the source of reimbursement, and using infrastructure asset-backed special plans as the carrier. Marketable securities issued to investors that represent infrastructure property or a share of property rights and interests. Infrastructure projects mainly include warehousing and logistics, transportation facilities such as toll roads, airports and ports, municipal facilities such as water, electricity and heat, pollution control, information networks, industrial parks and other infrastructure.
Infrastructure public offering REITs are internationally accepted assets. They have the characteristics of high liquidity, relatively stable returns, and strong security. They can effectively revitalize existing assets, fill the gaps in current financial products, broaden social capital investment channels, and increase the proportion of direct financing. Enhance the quality and efficiency of capital market services for the real economy. In the short term, it is conducive to extensively raising project capital and reducing debt risks. It is an effective policy tool to stabilize investment and make up for shortcomings; in the long term, it is conducive to improving the savings conversion investment mechanism, reducing the leverage of the real economy, and promoting the marketization and standardization of infrastructure investment and financing healthy growth.
The infrastructure public offering REITs structure has characteristics:
First, more than 80% of the fund’s assets are invested in infrastructure asset-backed securities and hold all of its shares; the fund holds all the equity of the infrastructure project company through infrastructure asset-backed securities;
The second is that the fund obtains full ownership or operating rights of infrastructure projects through special purpose vehicles such as asset-backed securities and project companies;
Third, fund managers take the initiative to operate and manage infrastructure projects, with the main purpose of obtaining stable cash flows such as rent and fees for infrastructure projects;
The fourth is to adopt a closed operation, and the income distribution ratio shall not be less than 90% of the annual distributable amount of the combined fund.
article links：9 public REITs collectively closed up on the first day
Reprint indicated source：Shine Trader Limited Live information