On November 18, Capital State learned that on November 16, China Communications and Construction issued a notice that the application for securities investment fund for closed infrastructure of Huaxia China Communications Expressway was accepted.
Relevant data show that since the first batch of 9 public REITs listed on June 21, the second batch of public offering REITs has been on its way. Specifically, Jianxin Zhongguancun Industrial Park REIT and Huaxia Yuexiu Expressway REIT2 single project has been approved by the Shanghai and Shenzhen Stock Exchange; Guotai Junan Lingang Dongjiu Intelligent Manufacturing Industrial Park closed infrastructure securities investment fund and Huaxia China Jiajian Expressway closed infrastructure securities investment fund 2 projects are in the stage of declaration and examination. It can be seen that the second batch of public offering REITs products include 2 single industrial parks and 2 single highways, distributed in the core areas such as Beijing, Shanghai and Hubei, and the scale of the public offering REITs market will be further expanded.
Relevant professionals said that the public offering of REITs provides new financing channels for China's infrastructure industry and helps to invigorate existing assets. At the same time, it provides investors with more diversified asset allocation options, which helps to support the real economy of financial services.
As for the performance of the first public offering REITs, the data showed that as of November 17, 2021, the closing prices of nine products had risen by an average of 17.7 per cent over their offering prices. Among them, AVIC Shougang green energy REIT and rich country's first water REIT increased the most, by 30.9% and 27.46%, respectively.
The person in charge of the relevant business said that a good start may be related to three reasons: first, the first batch of public offering REITs underlying assets are mature and high-quality infrastructure, investors gradually realize the scarcity of public REITs assets; second, the market investment demand is strong, 2 of the 9 products have an effective subscription ratio of more than 10 times, the average effective subscription multiple is 7.89 times, private equity funds, commercial banks, securities firms and other management institutions are involved Third, in the context of the scarcity of high-quality assets that provide robust returns, public REITs includes asset appreciation and liquidity premium of secondary market transactions in addition to the compulsory dividend income of the underlying assets, and the risk and return characteristics are quite attractive.
It is worth mentioning that some of the first 9 public offering REITs products have started their first dividend in 2021. November 11 this year, AVIC Fund disclosed that CNAC Shougang Green Energy REIT dividend notice said that the dividend is in the form of cash dividend, dividend program for 5.1541 yuan / 10 fund shares; on the same day, the CICC Fund issued a CICC GLP REIT dividend notice that the dividend is in the form of cash dividends, dividend program for 0.5220 yuan / 10 fund shares, and exempt from dividend fees.
Under the above background, for the second batch of public offering REITs on the road, market institutions are more looking forward to it.
According to public data, a total of 900 million copies of REIT were issued in Jianxin Zhongguancun Industrial Park, including 630 million strategic placements, 188 million offline sales, and 82 million public subscription shares; Huaxia Yuexiu Expressway REIT issued a total of 300 million copies, including 210 million strategic placements, 63 million offline sales, and 27 million subscriptions for the public.
In terms of relevant policies, on November 17th, the Bancassurance Regulatory Commission issued a document agreeing to invest insurance funds in the public offering of REITs. At present, China's public offering REITs is in the initial stage, the overall market scale is small, liquidity is small, but in the long run, the future development space is huge.