Viewpoint Real Estate New Media understands that the Notice covers four aspects: fully understanding the significance of promoting infrastructure REITs, the basic principles of promoting infrastructure REITs, the requirements of infrastructure REITs pilot work, and the arrangement of infrastructure REITs pilot work.
According to the Notice, infrastructure REITs are internationally accepted allocation assets with the characteristics of high liquidity, relatively stable income and strong security. It can effectively revitalize existing assets, fill the gaps in current financial products, broaden the channels of social capital investment, increase the proportion of direct financing, and improve the quality and efficiency of capital market serving the real economy.
In the short term, infrastructure REITs are conducive to widely raising project capital and reducing debt risk, which is an effective policy tool to stabilize investment and make up for shortcomings; In the long run, it is conducive to improving the mechanism of transforming savings into investment, reducing the leverage ratio of the real economy, and promoting the marketization, standardization and healthy development of infrastructure investment and financing.
In promoting the basic principles of infrastructure REITs, the Notice clarifies that infrastructure REITs should conform to national policies and focus on high-quality assets. Follow the market principle and adhere to the orientation of rights and interests. Develop innovation and standardization simultaneously, and improve operational capability. Rules first, steadily carry out the pilot. Strengthen the main responsibility of the organization and promote the return of responsibility. Improve relevant policies and effectively prevent and control risks.
Regarding the requirements for infrastructure REITs pilot, the Notice points out that regionally, priority should be given to supporting key areas such as Beijing-Tianjin-Hebei, Yangtze River Economic Belt, xiong'an new area, Guangdong-Hong Kong-Macao Greater Bay Area, Hainan and Yangtze River Delta, and supporting national new districts and qualified national economic and technological development zones to carry out pilot projects.
In terms of industry, we will focus on supporting infrastructure short-board industries, including transportation facilities such as warehousing and logistics, toll roads, municipal projects such as water, electricity and heat, and pollution control projects such as urban sewage and garbage treatment, solid waste and hazardous waste treatment. Encourage new infrastructure such as information networks and national strategic emerging industrial clusters, high-tech industrial parks and characteristic industrial parks to carry out pilot projects.
At the same time, the notice also put forward clear requirements for the project. The infrastructure REITs pilot project should meet the following conditions: First, the ownership of the project is clear, the relevant procedures such as project investment management, planning, environmental assessment and land use have been fulfilled as required, and the project has passed the completion acceptance. PPP projects should comply with the relevant regulations of government and social capital management in accordance with the law, and the source of income is mainly paid by users, and there are no major problems and contract disputes.
Second, it has a mature business model and market-oriented operation ability, resulting in sustained and stable income and cash flow, good return on investment, sustainable operation ability and good growth potential.
Third, the sponsors (original obligees) and infrastructure operating enterprises have good credit, sound internal control system, and the ability to continue to operate, and have no major violations of laws and regulations in the last three years. Infrastructure operation enterprises should also have rich operation and management capabilities.
Fourth, strengthen the management of financing purposes. The use of funds obtained by the promoters (original owners) through infrastructure transfer shall conform to the national industrial policy, encourage the use of recovered funds for new infrastructure and public utilities construction, and focus on supporting short-board projects to form a virtuous circle of investment.
Regarding the arrangement of infrastructure REITs pilot, the Notice pointed out that in the initial stage of the pilot, qualified securities companies or fund management companies qualified for public offering fund management set up public offering infrastructure securities investment funds according to law, and after being registered by the China Securities Regulatory Commission, they raised funds through public offering fund shares, and purchased infrastructure asset-backed securities set up and issued by managers belonging to the same actual controller to complete the acquisition of infrastructure and carry out infrastructure REITs business.
At the same time, if the public offering of infrastructure securities investment funds conforms to the provisions of the Securities Law and the Securities Investment Fund Law, it may apply for listing and trading on the stock exchange.