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Accompany you to make money in Hong Kong stock market!

Hello, everyone, I am the representative of Niuniu class!

Today is the 12th lecture of a series of courses "20 lectures on Hong Kong Stock Investment"!

Niu friends, please pick up the small bench and come to class together.

In April this year, the China Securities Regulatory Commission and the National Development and Reform Commission jointly issued the Circular on promoting the pilot work of Real Estate Investment Trusts (REITs) in Infrastructure.

The document points out that

It is of great significance to push forward the infrastructure REITs pilot project:

1. Infrastructure REITs is an internationally accepted allocation of assets, which has the characteristics of high liquidity, relatively stable income and strong security. It can effectively activate existing assets, fill the gaps in current financial products, broaden social capital investment channels, increase the proportion of direct financing, and enhance the quality and efficiency of capital market services to the real economy.

2. In the short term, it is conducive to widely raising project capital and reducing debt risk, which is an effective policy tool to stabilize investment and make up for deficiencies.

3. In the long run, it will help to improve the mechanism of transforming savings into investment, reduce the leverage of the real economy, and promote the market-oriented, standardized and healthy development of infrastructure investment and financing.

-Circular on promoting the pilot work of Real Estate Investment Trust funds (REITs) in Infrastructure

This also means that the long-awaited public offering REITs in China's financial market has been officially opened.

On August 7, the CSRC issued the guidelines on Public offering of Infrastructure Securities Investment funds (for trial implementation), which made further provisions on the development of REITs.

As a potential investment target, infrastructure REITs has attracted the attention of many investors. Goldman Sachs Group predicts that China's real estate investment trust market will eventually reach $3 trillion.

As one of the more mainstream rights and interests investment products in the world, what is the sanctity of REITs that she came out shyly in the mainland market?

Today, the representative of Niuniu class will take you to understand REITs!

1. What isREITs?

REITs, the real estate investment trust, is similar to a closed-end mutual fund, butThe object of investment is real estate.Investment vehicle.

It invests mainly in real estate projects, such as shopping malls, office buildings, hotels and serviced apartments.

In short, it is to concentrate the investors' money to buy a house, rent it out, deduct the fund's management fees, and distribute the rental income to the investors.。While investors receive regular cash income, they can also get a premium on property appreciation.

2. Is it worth buying REITs?

• Good liquidityThe complete property assets are divided into relatively small units and can be circulated in the open market, lowering the threshold for investors.

• The business model is simpleThe essence of REITs is the landlord, and the investor is the shareholder of the landlord.

• High dividend payoutAccording to the current regulations of the Hong Kong Securities and Futures Commission, the dividend distribution ratio of real estate investment trusts must be at least 90%.

• Low leverageLike listed real estate companies, REITs is leveraged, but it is moderately leveraged. The average leverage ratio of REITs in Hong Kong is 26%.

• Tax neutralityREITs income is used for dividends to avoid double taxation; Hong Kong gives strong tax concessions to REITs products.

• Low portfolio riskMost of the REITs funds are used to buy and hold property assets that generate stable cash flow, such as office buildings, commercial retail, hotels, apartments, industrial real estate and so on.

3. How to screen high quality REITs

Factors for consideration in selecting a base:

• Property portfolio distributionREITs's portfolio holds different properties and the stability of rental income varies. For example, the leading groups are mainly shopping malls and car parks, which are less affected by economic fluctuations. And the combination of the rich is mainly hotels, relatively speaking, it will be more affected by the economic cycle.

• Property locationInvestors judge the trend of local rents by the location of the property.

• Future developmentInvestors should pay attention to the future development of the property, such as whether there are any renovation, transformation or optimization plans.

• Interest rate trendThe valuation of REITs is based on the discounted value of rental income of the property held. The higher the interest rate, the lower the discounted value of future cash flow, so the rising cycle of interest tends to put downward pressure on REITs prices.

4. REITs in Hong Kong market

The REITs market in Hong Kong, China began to develop gradually in 2003 and now ranks third in the Asian market.There are 11 animals in total. The specific quota is shown in the following figure:

Among them$Link Real Estate Investment Trust (00823.HK) $It is the largest REITs in Asia, with 12.5% of mainland assets in its portfolio, mainly retail stores.

According to the annual report, the total value of the property portfolio is HK $196 billion, including retail (74.6 per cent), car parks (16.2 per cent) and offices (9.2 per cent). Among them, Hong Kong accounts for 85.5% of the total market.

That's all for today's sharing!

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The class representative will select 8 participants in the discussion area and give 188 Niuniu points!

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Let's not part until we meet again!

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