On December 11, 2020, the 5th China Real Estate Securitization Cooperation Development Summit, co-organized by China Asset Securitization Forum (CSF), China International Financial Co., Ltd. (CICC), Beijing Jingtian Gongcheng Law Firm, China Financial Frontier Forum (CFAF), and RCREIT (REITs Research Center), came to a successful conclusion at the National Convention and Exhibition Center Shanghai InterContinental Hotel. "Ride the wind and set sail", it is timely to promote the pilot of public REITs in the field of infrastructure to enter a critical period. This conference brought together industry leaders to interpret how to use policy support, grasp the pulse of the market, and promote the development of the industry from different angles. Including the impact of the launch of public REITs on the capital market, infrastructure and real estate industries: How to make the public REITs market more active and effective while developing steadily? How to cultivate investment institutions and market professional institutions, as well as tax policy recommendations, etc. At the same time, experts from mature overseas markets such as Japan and Singapore were invited to share their experiences. The conference attracted about 800 professionals to participate and attracted widespread attention from the industry.
Picture: Secretary-General of China Asset Securitization Forum, Wu Fangwei delivered a speech
In his speech, Wu Fangwei pointed out that my country's financing mechanism has long been supported by subject credit, and even a certain belief, and even the asset securitization market has been affected by this. But now the situation has changed subtly. The successive default incidents in the bond market have shaken this mechanism and shaken the so-called belief in state-owned enterprises. The demand for penetrating the underlying market in the ABS market is becoming increasingly strong, and the policy of unified registration of credit ABS underlying assets has also been introduced.
In terms of public REITs, infrastructure is the underlying assets in the securitization context, and policy concerns are also focused on whether they can generate stable cash flow and the dispersion of cash flow. This shows that a financing mechanism that is truly supported by asset quality and cash flow is entering us and is worthy of everyone's attention.
Figure: Co-Chairman of China Asset Securitization Forum, Meng Xiaosu delivered a keynote speech entitled "Dedicate REITs to China in the present",
Meng Xiaosu said that infrastructure REITs pilot should be deepened. It is not easy to launch the REITs pilot, but the scale of the pilot should be expanded. This involves a yield issue, which also plagues review experts. The yield issue should be considered from two aspects. The first is that the asset evaluation should not be too high. In the past, it was to borrow from banks and obtain loans by overvalued methods. Now it is direct financing and needs to be modified. The second is that some people say that passive returns can only be used to absorb active returns, and we cannot be bound by this view. In fact, international REITs are all passive returns + active returns, and there are also some rental bonus models, and some have been combined income, so they should not be restricted. Including whether government-purchased services can be included in the REITs income, this is possible in the United States. Prisons in the United States can use after-sales leaseback services, which has become good REITs.
Second, launch REITs for renting houses in a timely manner. Foreign experts say you started out in infrastructure, and some Chinese experts say you don’t do real estate REITs, but only infrastructure REITs. These understandings are one-sided. The central government advocates both rental and sales. At present, it is vigorously promoting the market for rental housing. Only by developing REITs can it be conducive to supporting long-term leasing and can it support the development of professional and institutional housing rental companies. This kind of long-term professional institution is not a Beike Apartment loan to live, but should be a REIT institution, with long-term funds held.
The third is to speed up the resolution of REITs tax exemption problem. Why do we use public assets to make REITs mainly because it is easy to overcome tax exemption barriers. Public assets are social assets. We can find some basis for tax exemption, so tax exemption is easy. Half of the taxes of government assets are in our own hands, and the tax pain is reduced by half compared to other companies. We must continue to promote these tasks. Fourth, research and launch company-type REITs.
Figure: Director of the Investment Research Institute of the National Development and Reform Commission, Wu Yaping delivered a keynote speech entitled "The Significance and Development Prospects of Infrastructure REITs"
Wu Yaping believes that the first and most important significance of the launch of public REITs in the infrastructure field is to open up the infrastructure field. It is another direct financing channel to connect with the capital market in addition to bond issuance and stock listing, and broaden the source of funds in the infrastructure field. The second is to revitalize existing infrastructure assets. Another very important point is to improve efficiency. Most of the 400 trillion stocks are at the municipal and county levels. These municipal and county levels are mostly decentralized management and decentralized operations. They are basically water companies, basic heating companies, etc., and now there is a lack of scale, standardization, and marketization. The meaning of revitalization is to sell money on the one hand, and on the other hand, it is to improve operational efficiency and improve the operational efficiency of our entire assets by improving operational efficiency.
Figure: Managing Director of Investment Banking Department and Head of Fixed Income Group, Ciyan Yi delivered a keynote speech entitled "Investment Bank Perspective: Understanding and Suggestions for "First Edition" Public REITs",
Ciyan Yi talked about the fact that when facing the investment products of the public, investment banks and funds are more cautious and nervous than everyone thinks. REITs do enrich investors' choices, but when taking this step, we as financial institutions must define to the public what kind of investment products this is. There is actually no Real Estate or Trust in the initial public REITs in China. It should be called a high-proportion dividend fund for infrastructure. "Infrastructure" clearly defines the scope of underlying assets and there is no real estate. "High-proportion dividend" means that the dividend ratio must be high and reflects the full share of the share. "Fund" means that the carrier is a public fund, which is a public fund product with medium liquidity, medium returns, and medium risks. What exactly is medium returns, not low returns? Different people have different perceptions, and it is necessary to communicate with investors based on different asset application scenarios; and we must inform investors that medium risks mean "products are risky", and REITs do not guarantee capital and do not lock in yields; in addition, infrastructure assets are facing overhaul, and how to reflect these fixed and unexpected cash flow expenditures in the valuation model is a new topic for our investment banks and funds, and we feel that the responsibility is heavy. In summary, as an investment bank, we must define this product well, find the investment group of China's REITs, and do a good job in educating and risk warning for new product investors.
Figure: Singapore Exchange, Deputy Director, Wang Min delivered a keynote speech on "The current development status of overseas real estate investment trusts and reference inspiration for China - Taking Singapore as an example",
Wang Min introduced that Singapore REITs have a total of 43 REITs and real estate trusts, with a total market value of SGD 95 billion. Among these 43 REITs, we will also do a yield calculation every year. The latest data this year's average yield is 7.2%. Looking back on the past fifteen years, the average yield has been stable between 5% and 7%, which is a very stable dividend return and is also one of the highest returns in the REITs market. When talking about the secrets and elements of success in REITs, we summarized it as the first thing we need is to have a large number of global institutional investors and high net asset investors, as well as a progressive regulatory framework, an effective tax framework, and investor confidence. The last point is active financing and asset acquisition after listing.
Figure: The head of the Greater China Region of the Japan Real Estate Research Institute, the consortium legal person, Lin Shubin delivered a keynote speech entitled "The Development of Real Estate Securitization in Japan and Thoughts on Benchmarking China"
Lin Shubin emphasized that professional asset management companies are very important and have been suggesting whether to issue a professional asset management company to real estate professional asset management to manage and operate securitization products, just like now issuing a financial license to securities companies, because there are also professional licenses in many countries and Hong Kong; Japan is also the case. The first-class financial license is for stocks, and specializing in real estate private equity products is called second-class financial products, so it is separate. I think our country can also try to make some such professional licenses.The real estate market has emphasized the model of land acquisition, building construction, and high turnover in the past. The real estate market cannot be viewed in this model. When it comes to the asset management model, many developers pay attention to the indicator of IRR, but they pay attention to Cap Rate and cash flow.
Figure: Zhonglun Law Firm, Partner; China Asset Securitization Forum, Chairman of the Executive Committee, Liu Bairong delivered a keynote speech on "Discussion on Issues in the Practical Process of Infrastructure Public Offer REIT's Project",
Liu Bairong introduced the overall application process and latest regulatory requirements of the pilot project of infrastructure public offer REITs, as well as hot, difficult issues, and key points of compliance concern. The main mechanism for the investment operation of public REITs is mentioned:
- Leverage-Borrowing Arrangement
Infrastructure Fund borrows funds directly or indirectly from outside, and the principle of priority for the interests of fund shareholders should be followed and must not rely on external credit enhancement. The purpose of the loan is limited to the daily operation of infrastructure projects, maintenance and modification, project acquisition, etc., and the total assets of the fund shall not exceed 140% of the fund's net assets. The amount of the acquisition loan of the
project shall not exceed 20% of the fund's net assets and meet relevant requirements.
- Return distribution
Infrastructure Fund shall allocate more than 90% of the annual distributable amount of the combined fund to investors in cash. The income distribution of the infrastructure fund shall not be less than once a year if the allocation conditions are met.
- share retention requirements
The total proportion of the original stakeholder of the infrastructure project or the related parties under its same control participating in the strategic allocation of infrastructure fund shares shall not be less than 20% of the number of fund shares issued in this fund.
- related transactions
If the fund manager uses fund property to acquire infrastructure projects and engages in other major related transactions, he/she shall convene a meeting of fund shareholders in accordance with the requirements of REITs guidelines and other regulations.
- idle funds invest in
Infrastructure Fund Except for investing in infrastructure asset-backed securities, the remaining fund assets shall be invested in interest rate bonds, AAA-level credit bonds, or money market tools in accordance with the law.
Figure: Managing Director of Fixed Income Department and Head of Global Fixed Income Product Research Business, Chen Jianheng delivered a keynote speech on "Discussing Public REITs from the Macro Research Perspective of Public REITs"
Chen Jianheng talked about what is the significance of public REITs to China? We see that the launch of REITs has been developed in the macro context for the past ten or twenty years. China's macro leverage ratio has risen to a high level, especially for urban investment platforms. We see that China's infrastructure development has been very fast in the past ten or twenty years, but urban investment debt leverage has risen very fast. The macro industry understands that our current products of REITs need to achieve a certain level to help our enterprises, especially urban investment platforms, infrastructure enterprises, to moderately reduce the macro leverage ratio. The logic is to revitalize assets, not to continue to increase ordinary bonds and equity, but to revitalize existing assets. For urban investment platforms, the ability to grow REITs in the future will help to moderately reduce the macro leverage ratio, which is of relatively important significance at the macro level.
Picture: Partner of Beijing Jingtian Gongcheng Law Firm, Qin Maoxian, delivered a keynote speech "Interpretation of the Core Supervision Policy of Public Offering REITs"
Qin Maoxian proposed from the perspective of international practice, what is the most basic issue in the governance of public offer REITs in my country? It is the issue of agency cost. At the same time, there is a most basic principle and rule. The more subjects involved, the longer the transaction chain and the higher the cost. Our pilot transaction structure is the most complex structure. In this case, it is timely to discuss whether our Chinese version of public REITs will have too high agency costs and how to allocate responsibilities between institutions. We should be predicted and paid attention in advance. The basic problem of
governance is to solve the problem of agency costs. What is the goal? We briefly summarized that there are five goals, the first is to improve the supervision, checks and balances system. It mainly reflects the issue of how to balance the rights and obligations between REITs holders, trustees and managers.The second is to establish an incentive-compatible interest coordination mechanism, so that everyone’s interests are consistent and we must win-win. Third, the trustees should be urged to effectively fulfill their trust responsibilities and fulfill their information obligations, which is another goal. Fourth, the legitimate rights and interests of holders should be protected to the greatest extent, which is also what we are paying more attention to, and we must ensure this basic rights and interests. Fifth, from the perspective of functional division, functions cannot be repeated or missing. The boundaries between institutions must be analyzed and the interests of all parties are taken into account. This is the governance goal we should achieve.
Figure: General Manager and Managing Director of CICC Fund, Sun Jing delivered a keynote speech on "Talking about Public REITs from the Perspective of Public Funds"
Sun Jing mentioned the product structure of public REITs, pointing out that there are indeed many levels, but overall, it is roughly divided into two layers, fund layer, property layer, and real estate layer. One of the more important ones is the fund manager, who minimizes the entrusted relationship, and the other is the custodian bank. Under the external operation management model, the asset operation management agency is now usually the original stakeholder or its affiliates, and can also be regarded as a layer. In this way, there are three very important roles. If there is a financial advisor, it overlaps with the plan manager. Finally, I saw that this design is a shell of assets that is placed into the public offering, and the shell of public offering must adapt to the operating model of assets. I agree to call it the transition stage or the starting version, but at this stage, we must adapt to each other and put each other into each other's shells. This process is a running-in process, and only running-in can we combine.
Figure: Chairman of Shanghai Heyi Information Technology Service Co., Ltd. (CNABS), Pang Yang delivered a keynote speech on "Practical Experience of Public Infrastructure REITs in Japan"
Pang Yang took a photovoltaic power station project in Japan as an example and talked about public REITs. REITs have solved the pain points of many renewable energy developers, which is who the long-term final holder should be. The most suitable investor is REITs. And with REITs, each stage of development can match very good funds. Second, REITs are very good products. This infrastructure REITs, especially the infrastructure REITs mainly based on photovoltaics, have no volatility, because the electricity price is completely guaranteed, and at most there will be changes in microclimates. In the future, photovoltaics will not require government subsidies. The electricity price is the real-time electricity price, and there are some inflation factors in the middle, so there is still room for upward. It is now very stable and fixed. Infrastructure The difference between REITs and J-REITs and non-infrastructure REITs is that they have very high requirements for investment in projects, analysis of projects, pricing of projects and management and operation of projects.
On December 11, 2020, the 5th China Real Estate Securitization Cooperation Development Summit, co-organized by China Asset Securitization Forum (CSF), China International Financial Co., Ltd. (CICC), Beijing Jingtian Gongcheng Law Firm, China Financial Frontier Forum (CFAF), and RCREIT (REITs Research Center), came to a successful conclusion at the National Convention and Exhibition Center Shanghai InterContinental Hotel. "Ride the wind and set sail", it is timely to promote the pilot of public REITs in the field of infrastructure to enter a critical period. This conference brought together industry leaders to interpret how to use policy support, grasp the pulse of the market, and promote the development of the industry from different angles. Including the impact of the launch of public REITs on the capital market, infrastructure and real estate industries: How to make the public REITs market more active and effective while developing steadily? How to cultivate investment institutions and market professional institutions, as well as tax policy recommendations, etc. At the same time, experts from mature overseas markets such as Japan and Singapore were invited to share their experiences. The conference attracted about 800 professionals to participate and attracted widespread attention from the industry.
Picture: Secretary-General of China Asset Securitization Forum, Wu Fangwei delivered a speech
In his speech, Wu Fangwei pointed out that my country's financing mechanism has long been supported by subject credit, and even a certain belief, and even the asset securitization market has been affected by this. But now the situation has changed subtly. The successive default incidents in the bond market have shaken this mechanism and shaken the so-called belief in state-owned enterprises. The demand for penetrating the underlying market in the ABS market is becoming increasingly strong, and the policy of unified registration of credit ABS underlying assets has also been introduced.
In terms of public REITs, infrastructure is the underlying assets in the securitization context, and policy concerns are also focused on whether they can generate stable cash flow and the dispersion of cash flow. This shows that a financing mechanism that is truly supported by asset quality and cash flow is entering us and is worthy of everyone's attention.
Figure: Co-Chairman of China Asset Securitization Forum, Meng Xiaosu delivered a keynote speech entitled "Dedicate REITs to China in the present",
Meng Xiaosu said that infrastructure REITs pilot should be deepened. It is not easy to launch the REITs pilot, but the scale of the pilot should be expanded. This involves a yield issue, which also plagues review experts. The yield issue should be considered from two aspects. The first is that the asset evaluation should not be too high. In the past, it was to borrow from banks and obtain loans by overvalued methods. Now it is direct financing and needs to be modified. The second is that some people say that passive returns can only be used to absorb active returns, and we cannot be bound by this view. In fact, international REITs are all passive returns + active returns, and there are also some rental bonus models, and some have been combined income, so they should not be restricted. Including whether government-purchased services can be included in the REITs income, this is possible in the United States. Prisons in the United States can use after-sales leaseback services, which has become good REITs.
Second, launch REITs for renting houses in a timely manner. Foreign experts say you started out in infrastructure, and some Chinese experts say you don’t do real estate REITs, but only infrastructure REITs. These understandings are one-sided. The central government advocates both rental and sales. At present, it is vigorously promoting the market for rental housing. Only by developing REITs can it be conducive to supporting long-term leasing and can it support the development of professional and institutional housing rental companies. This kind of long-term professional institution is not a Beike Apartment loan to live, but should be a REIT institution, with long-term funds held.
The third is to speed up the resolution of REITs tax exemption problem. Why do we use public assets to make REITs mainly because it is easy to overcome tax exemption barriers. Public assets are social assets. We can find some basis for tax exemption, so tax exemption is easy. Half of the taxes of government assets are in our own hands, and the tax pain is reduced by half compared to other companies. We must continue to promote these tasks. Fourth, research and launch company-type REITs.
Figure: Director of the Investment Research Institute of the National Development and Reform Commission, Wu Yaping delivered a keynote speech entitled "The Significance and Development Prospects of Infrastructure REITs"
Wu Yaping believes that the first and most important significance of the launch of public REITs in the infrastructure field is to open up the infrastructure field. It is another direct financing channel to connect with the capital market in addition to bond issuance and stock listing, and broaden the source of funds in the infrastructure field. The second is to revitalize existing infrastructure assets. Another very important point is to improve efficiency. Most of the 400 trillion stocks are at the municipal and county levels. These municipal and county levels are mostly decentralized management and decentralized operations. They are basically water companies, basic heating companies, etc., and now there is a lack of scale, standardization, and marketization. The meaning of revitalization is to sell money on the one hand, and on the other hand, it is to improve operational efficiency and improve the operational efficiency of our entire assets by improving operational efficiency.
Figure: Managing Director of Investment Banking Department and Head of Fixed Income Group, Ciyan Yi delivered a keynote speech entitled "Investment Bank Perspective: Understanding and Suggestions for "First Edition" Public REITs",
Ciyan Yi talked about the fact that when facing the investment products of the public, investment banks and funds are more cautious and nervous than everyone thinks. REITs do enrich investors' choices, but when taking this step, we as financial institutions must define to the public what kind of investment products this is. There is actually no Real Estate or Trust in the initial public REITs in China. It should be called a high-proportion dividend fund for infrastructure. "Infrastructure" clearly defines the scope of underlying assets and there is no real estate. "High-proportion dividend" means that the dividend ratio must be high and reflects the full share of the share. "Fund" means that the carrier is a public fund, which is a public fund product with medium liquidity, medium returns, and medium risks. What exactly is medium returns, not low returns? Different people have different perceptions, and it is necessary to communicate with investors based on different asset application scenarios; and we must inform investors that medium risks mean "products are risky", and REITs do not guarantee capital and do not lock in yields; in addition, infrastructure assets are facing overhaul, and how to reflect these fixed and unexpected cash flow expenditures in the valuation model is a new topic for our investment banks and funds, and we feel that the responsibility is heavy. In summary, as an investment bank, we must define this product well, find the investment group of China's REITs, and do a good job in educating and risk warning for new product investors.
Figure: Singapore Exchange, Deputy Director, Wang Min delivered a keynote speech on "The current development status of overseas real estate investment trusts and reference inspiration for China - Taking Singapore as an example",
Wang Min introduced that Singapore REITs have a total of 43 REITs and real estate trusts, with a total market value of SGD 95 billion. Among these 43 REITs, we will also do a yield calculation every year. The latest data this year's average yield is 7.2%. Looking back on the past fifteen years, the average yield has been stable between 5% and 7%, which is a very stable dividend return and is also one of the highest returns in the REITs market. When talking about the secrets and elements of success in REITs, we summarized it as the first thing we need is to have a large number of global institutional investors and high net asset investors, as well as a progressive regulatory framework, an effective tax framework, and investor confidence. The last point is active financing and asset acquisition after listing.
Figure: The head of the Greater China Region of the Japan Real Estate Research Institute, the consortium legal person, Lin Shubin delivered a keynote speech entitled "The Development of Real Estate Securitization in Japan and Thoughts on Benchmarking China"
Lin Shubin emphasized that professional asset management companies are very important and have been suggesting whether to issue a professional asset management company to real estate professional asset management to manage and operate securitization products, just like now issuing a financial license to securities companies, because there are also professional licenses in many countries and Hong Kong; Japan is also the case. The first-class financial license is for stocks, and specializing in real estate private equity products is called second-class financial products, so it is separate. I think our country can also try to make some such professional licenses.The real estate market has emphasized the model of land acquisition, building construction, and high turnover in the past. The real estate market cannot be viewed in this model. When it comes to the asset management model, many developers pay attention to the indicator of IRR, but they pay attention to Cap Rate and cash flow.
Figure: Zhonglun Law Firm, Partner; China Asset Securitization Forum, Chairman of the Executive Committee, Liu Bairong delivered a keynote speech on "Discussion on Issues in the Practical Process of Infrastructure Public Offer REIT's Project",
Liu Bairong introduced the overall application process and latest regulatory requirements of the pilot project of infrastructure public offer REITs, as well as hot, difficult issues, and key points of compliance concern. The main mechanism for the investment operation of public REITs is mentioned:
- Leverage-Borrowing Arrangement
Infrastructure Fund borrows funds directly or indirectly from outside, and the principle of priority for the interests of fund shareholders should be followed and must not rely on external credit enhancement. The purpose of the loan is limited to the daily operation of infrastructure projects, maintenance and modification, project acquisition, etc., and the total assets of the fund shall not exceed 140% of the fund's net assets. The amount of the acquisition loan of the
project shall not exceed 20% of the fund's net assets and meet relevant requirements.
- Return distribution
Infrastructure Fund shall allocate more than 90% of the annual distributable amount of the combined fund to investors in cash. The income distribution of the infrastructure fund shall not be less than once a year if the allocation conditions are met.
- share retention requirements
The total proportion of the original stakeholder of the infrastructure project or the related parties under its same control participating in the strategic allocation of infrastructure fund shares shall not be less than 20% of the number of fund shares issued in this fund.
- related transactions
If the fund manager uses fund property to acquire infrastructure projects and engages in other major related transactions, he/she shall convene a meeting of fund shareholders in accordance with the requirements of REITs guidelines and other regulations.
- idle funds invest in
Infrastructure Fund Except for investing in infrastructure asset-backed securities, the remaining fund assets shall be invested in interest rate bonds, AAA-level credit bonds, or money market tools in accordance with the law.
Figure: Managing Director of Fixed Income Department and Head of Global Fixed Income Product Research Business, Chen Jianheng delivered a keynote speech on "Discussing Public REITs from the Macro Research Perspective of Public REITs"
Chen Jianheng talked about what is the significance of public REITs to China? We see that the launch of REITs has been developed in the macro context for the past ten or twenty years. China's macro leverage ratio has risen to a high level, especially for urban investment platforms. We see that China's infrastructure development has been very fast in the past ten or twenty years, but urban investment debt leverage has risen very fast. The macro industry understands that our current products of REITs need to achieve a certain level to help our enterprises, especially urban investment platforms, infrastructure enterprises, to moderately reduce the macro leverage ratio. The logic is to revitalize assets, not to continue to increase ordinary bonds and equity, but to revitalize existing assets. For urban investment platforms, the ability to grow REITs in the future will help to moderately reduce the macro leverage ratio, which is of relatively important significance at the macro level.
Picture: Partner of Beijing Jingtian Gongcheng Law Firm, Qin Maoxian, delivered a keynote speech "Interpretation of the Core Supervision Policy of Public Offering REITs"
Qin Maoxian proposed from the perspective of international practice, what is the most basic issue in the governance of public offer REITs in my country? It is the issue of agency cost. At the same time, there is a most basic principle and rule. The more subjects involved, the longer the transaction chain and the higher the cost. Our pilot transaction structure is the most complex structure. In this case, it is timely to discuss whether our Chinese version of public REITs will have too high agency costs and how to allocate responsibilities between institutions. We should be predicted and paid attention in advance. The basic problem of
governance is to solve the problem of agency costs. What is the goal? We briefly summarized that there are five goals, the first is to improve the supervision, checks and balances system. It mainly reflects the issue of how to balance the rights and obligations between REITs holders, trustees and managers.The second is to establish an incentive-compatible interest coordination mechanism, so that everyone’s interests are consistent and we must win-win. Third, the trustees should be urged to effectively fulfill their trust responsibilities and fulfill their information obligations, which is another goal. Fourth, the legitimate rights and interests of holders should be protected to the greatest extent, which is also what we are paying more attention to, and we must ensure this basic rights and interests. Fifth, from the perspective of functional division, functions cannot be repeated or missing. The boundaries between institutions must be analyzed and the interests of all parties are taken into account. This is the governance goal we should achieve.
Figure: General Manager and Managing Director of CICC Fund, Sun Jing delivered a keynote speech on "Talking about Public REITs from the Perspective of Public Funds"
Sun Jing mentioned the product structure of public REITs, pointing out that there are indeed many levels, but overall, it is roughly divided into two layers, fund layer, property layer, and real estate layer. One of the more important ones is the fund manager, who minimizes the entrusted relationship, and the other is the custodian bank. Under the external operation management model, the asset operation management agency is now usually the original stakeholder or its affiliates, and can also be regarded as a layer. In this way, there are three very important roles. If there is a financial advisor, it overlaps with the plan manager. Finally, I saw that this design is a shell of assets that is placed into the public offering, and the shell of public offering must adapt to the operating model of assets. I agree to call it the transition stage or the starting version, but at this stage, we must adapt to each other and put each other into each other's shells. This process is a running-in process, and only running-in can we combine.
Figure: Chairman of Shanghai Heyi Information Technology Service Co., Ltd. (CNABS), Pang Yang delivered a keynote speech on "Practical Experience of Public Infrastructure REITs in Japan"
Pang Yang took a photovoltaic power station project in Japan as an example and talked about public REITs. REITs have solved the pain points of many renewable energy developers, which is who the long-term final holder should be. The most suitable investor is REITs. And with REITs, each stage of development can match very good funds. Second, REITs are very good products. This infrastructure REITs, especially the infrastructure REITs mainly based on photovoltaics, have no volatility, because the electricity price is completely guaranteed, and at most there will be changes in microclimates. In the future, photovoltaics will not require government subsidies. The electricity price is the real-time electricity price, and there are some inflation factors in the middle, so there is still room for upward. It is now very stable and fixed. Infrastructure The difference between REITs and J-REITs and non-infrastructure REITs is that they have very high requirements for investment in projects, analysis of projects, pricing of projects and management and operation of projects.
Figure: Peak Dialogue 1, The impact of the launch of public REITs on the capital market, infrastructure and real estate industries: How to make the public REITs market more active and effective while developing steadily?
Host guests:
Zhang Yongcheng, Managing Director of Fixed Income Department of CICC, Global Structured
Discussion Guests:
Fu Fusheng, Beijing Jingtian Gongcheng Law Firm, Partner
Kong Lingyi, Shenzhen Venture Capital Real Estate Fund, Chief Investment Officer
Chen Xiaoou, Chairman and CEO of Fushang Asset Group; Hong Kong Yuexiu REIT independent director
Gu Yueru, Senior director of Ding & Walk, Qidian Holdings, General Manager of New Infrastructure Investment Department
Figure: Peak Dialogue 2, Risk and Prevention and Control of Real Estate Securitization from Different Institutional Perspectives
Host Guest:
Cao Hailiang, BOCI International Securities, head of asset securitization business
dialogue guests:
Jiang Haiyang, Suning Holding Group, President of Real Estate Investment and Financing
Xie Yuhao, Jin Chengtongda Law Firm, Senior Partner
Ruan Xiaojun, Chenxi Fund, General Manager of Strategic Development Center
Cao Yakun, deputy general manager of World Alliance Assessment Group and director of the Value Research Institute
Wei Yun, Zhongchengxin International, rating director of the Structural Financing Department
Figure: Peak Dialogue 3, Practice and Transformation and Upgrading of Real Estate Enterprise Supply Chain Finance Securitization
Host Guest:
Shulei, Greensill Capital, Managing Director
Dialogue Guests:
Chen Fushen, King & Wood Malleson Law Firm, Partner
Zhang Zhenduo, CITIC Construction Investment Securities, Senior Vice President
Luo Huiying, Sunac Group, General Manager of Innovation Financing Department of Beijing Regional Group
Liu Yonggang, Haier Financial Factoring, Financing Director
Song Xu, Joint Credit, Senior Analyst
Figure: Public REITs Special Session -- Roundtable discussion A: From the perspective of public funds, investment banks, investors and market participants, how to view the opportunities and challenges brought by public REITs
Host guests:
Wang Cheng, CICC, Executive General Manager of Investment Banking Department
Discussion guests:
Tang Yan, Deputy General Manager of CICC Fund, Executive General Manager
Sun Xin, Ping An Financial Management, Fixed Income Investment Department Head of Innovation Investment Business
Lin Kai , Industrial Bank, Asset Management Department REITs business manager
Shen Yaxiong , CICC, Executive General Manager of Investment Banking Department
Qin Maoxian, Jingtian Gongcheng Law Firm, Partner
REITs TRACK -- Roundtable B: C-REITs, an International Perspective
Moderator
- Zhiming Li "Mark", Managing Director, Executive Head of ABS IBD, CICCh
Panel Speakers
- Charles Chan, CEO CapitaLand China Commercial
- Lester Lee, Senior Vice President, Acquisitions, LaSalle Investment Management
- Keith Chan, CEO FUNLIVE Holdings Limited
- Allan, Zhang Wenliang, Vice President, Country Principal-China, APREA
- Stephen Luo, Partner, Jingtian & Gongcheng
- Alex Sun, Executive Director, IBD, CICCh
Figure: Public REITs Special Session -- Roundtable discussion C: Topic: Franchise infrastructure REITs practice and current problems
Host guest:
Wang Cheng, CICC, Executive General Manager of Investment Banking Department
Discussion guest:
Zhang Zhongwen, Shanghai Hangzhou Ningbo Investment Department Head
Gao Chong, Deloitte, Partner
Warm, JLL, Director of Evaluation and Consulting Department
Zhang Lu, CICC, Deputy General Manager of Investment Banking Department
Figure: Public REITs Special -- Roundtable discussion D: Topic: Real estate infrastructure REITs practice and current problems
Host guests:
Dong Hang, CICC, Executive General Manager of Investment Banking Department
Discussion guests:
Geng Jing, Greenland Holdings, Executive President
Li Hanjie, Beijing Jingtian Gongcheng Law Firm, Partner
Yang Zhi, CITIC, Director of Beijing Valuation and Advisory Service Department
Xu Xu, CICC, Deputy General Manager of Investment Banking Department
