As a new track with a potential market size of one trillion yuan, public offering REITs also brings new opportunities for the development of securities companies and other institutions. Chinese reporters of securities companies have learned that at present, many institutions have made efforts to lay out public offering REITs, and talents and projects have become the focus of competition.
For securities companies, public offering REITs not only means a vast new business to be explored, but also a differentiated competition track outside traditional investment banking and asset management businesses such as stocks and bonds. Deng Guoshan, managing director of first venture securities and head of structured products department, said that seizing the market opportunity of public offering REITs, securities companies, as a whole, play a fundamental role in the whole business chain of public offering REITs, such as customer contracting, investment allocation, etc., which can highlight the core characteristic advantages, realize the brand premium effect, expand the customer base of high-quality enterprises and enhance the level of cooperation And service quality.
Reshape a trillion new track
A trillion scale product will obviously change the market. The relevant person in charge of deppon securities told the Chinese reporters that for mature foreign markets, REITs has the characteristics of stable income, high dividend and high liquidity. It is regarded as the fourth important investment variety in addition to stocks, bonds and cash, and will play an important role in the capital market. Through public REITs, social funds are guided to invest in infrastructure projects with stable income, which can meet the demand of some social capital for stable cash dividend income and asset allocation with low risk fluctuation.
In terms of the allocation of residents assets, public REITs are expected to bring unprecedented changes. Deng Guoshan believes that China has entered the era of big asset management, but the industrys inclusiveness and transparency need to be further improved. Key problems still exist, such as maturity mismatch, mismatch of risk return, mismatch of supply and demand structure, and lack of gold content in product homogenization.
On the other hand, the continuous accumulation of Chinese residents wealth has produced a rigid demand for asset allocation. However, the market still lacks stable channels and opportunities for asset allocation. Public offering REITs can effectively fill the gap of financial products, provide investment products with symmetrical risk return, good liquidity and high transparency to the market, and provide convenient direct channels for public investors to participate in infrastructure and real estate market investment; public REITs can improve the deposit conversion investment mechanism to meet the huge demand for equity financing and residents wealth at the asset end of infrastructure At the end of the huge investment allocation demand smart match, so that all people share the fruits of economic development.
Securities companies strive for the first opportunity
There is no need to say much about the importance of public REITs. For a new variety, whoever runs fast and runs stably will have a better chance to stand out. A relevant person from a large securities firm in Shanghai told the securities times that its institution had already been carrying out the talent reserve of public offering REITs, and the project reserve was also continuously promoted.
The investment bank of the above-mentioned large-scale securities companies frankly said that in the layout of public offering REITs, small and medium-sized securities companies are more motivated to go ahead. In terms of business volume, the market share of large-scale securities companies in investment banking and other business areas is stable, and there is a gradual increase in the situation. The business competition pressure of small and medium-sized securities companies is comprehensively increased, and the new business is of greater significance for small and medium-sized securities companies pursuing differentiated competition.
In fact, many small and medium-sized securities companies do not hide their ambition for the public offering REITs business. On the companys distribution of its, Deng guocang said.
In the competition for reserves, various institutions have spared no effort, and most of the potential high-quality projects have entered the target list of securities companies.
For potential public REITs projects, deppon securities has also made a systematic review. Based on the past REITs and ABS business experience, the deppon securities public offering REITs project team has comprehensively sorted out the reserve list of leading enterprises of various asset types, focusing on logistics and warehousing, toll roads, sewage and solid waste treatment and other industries, and actively contacted with relevant leading enterprises to help sort out potential projects, and prepare pilot application materials for relevant public REITs projects.
Multiple challenges to be solved
As a new track, the development of public REITs is obviously faced with many uncertainties, and the internal and external challenges will make the pioneers feel pressure.
The first batch of pilot projects are facing challenges, and the mode evolution will affect the pattern. Deng Guoshan summed up the difficulties of securities companies in the layout of public offering REITs.
Therefore, from the perspective of the industry as a whole, it remains to be seen whether securities companies, as important financial institutions and core capital intermediaries, can seize the opportunity, identify their positioning, maintain strategic determination, be competent for basic roles, and seize the future REITs market highlands. Deng Guoshan said.
For the internal part of securities companies, Deng Guoshan believes that public offering REITs pose important challenges to securities companies in terms of accurate customer discovery and strategic cultivation, system resource docking and team optimization and integration, innovation exploration and investment research, platform integration efficiency and management, business thinking transformation, buyer seller interest balance, risk identification and prevention and control.
The relevant responsible person of deppon Securities believes that the internal challenges for securities companies to participate in public offering REITs mainly come from the establishment and good operation of inter departmental linkage and cooperation mechanism within securities companies. Due to the characteristics of its and its securities companies, it involves in the management of its products and securities companies. How to establish a multi department collaborative linkage mechanism within securities companies, to achieve good cross departmental communication, close cooperation between multiple business lines, and effective supervision and incentive of post loan management are the main internal challenges for securities companies to participate in public offering REITs.
Three challenges for public REITs
First, the mechanism of project qualification specification. Deng Guoshan said that many infrastructure projects, such as the rate of return of ownership qualification certificates and so on, can not meet the requirement of beautiful women marry first. At present, local governments at all levels and sponsors of the first batch of sprint projects have made great efforts to promote escort and the coordination efficiency of special classes is high. However, it is uncertain whether the policy strength and popularity can be maintained in the future.
He suggested that, on the basis of the pilot project, the policy guarantee should be constructed by incorporating REITs into the index assessment of relevant government departments, transforming the special class coordination into a long-term mechanism, and incorporating it into the medium and long-term development plan.
Second, the transfer of state-owned assets. Many infrastructure projects are state-owned assets. There are gaps in current laws and regulations such as the transfer process of state-owned assets property rights and asset pricing methods involved in REITs. There is no accurate and scientific guidance for public REITs in relevant rules and provisions, and there is uncertainty in the implementation. REITs includes the types, subjects and ways of transaction involved, which are significantly different from traditional state-owned assets transaction, state-owned shareholders and listed companies assets reorganization, and state-owned equity trading of listed companies. Simultaneous interpreting of state-owned REITs, such as the transfer of property rights under listing, may lead to two market positioning, overlapping functions and procedural conflicts. There are also risks of losing control of high-quality infrastructure assets and failure of REITs listing due to different prices.
Third, leverage. At present, the restrictions on the use of leverage in the pilot policy have actually blocked the arrangement of issuing leverage and restricted the use of operating leverage after listing. On the one hand, in the cycle of low debt interest rate, moderate leverage can boost the issuance of REITs and the improvement of yield under the premise of ensuring the control of risks; on the other hand, it is difficult to release the outstanding liabilities of many projects, including the high proportion of stocks, collateral mortgage and pledge of project loans, difficult change of credit conditions due to the change of main body, and the need to clear the liabilities first in asset restructuring. Deng Guoshan suggested that when the first batch of pilot projects operated well, the restrictions on the use of leverage ratio should be relaxed by modifying the supporting policies, or ABS should be allowed to be structured and layered to achieve leverage effect with priority of ABS. Source of this article: Yang Bin, responsible editor of securities companies in China_ NF4368
Third, leverage. At present, the restrictions on the use of leverage in the pilot policy have actually blocked the arrangement of issuing leverage and restricted the use of operating leverage after listing. On the one hand, in the cycle of low debt interest rate, moderate leverage can boost the issuance of REITs and the improvement of yield under the premise of ensuring the control of risks; on the other hand, it is difficult to release the outstanding liabilities of many projects, including the high proportion of stocks, collateral mortgage and pledge of project loans, difficult change of credit conditions due to the change of main body, and the need to clear the liabilities first in asset restructuring.
Deng Guoshan suggested that when the first batch of pilot projects operated well, the restrictions on the use of leverage ratio should be relaxed by modifying the supporting policies, or ABS should be allowed to be structured and layered to achieve leverage effect with priority of ABS.