China Fund News reporter Ruohui
Two approved in one day! The public REITs market ushered in the first expansion since May.
According to the official website of the China Securities Regulatory Commission, Huaxia TBEA New Energy REIT and Huatai Baowan Logistics REIT were officially approved for registration by the China Securities Regulatory Commission on May 11.
According to a reporter from China Fund News, Huaxia TBEA New Energy REIT is the first private enterprise in China to invest in clean energy REITs projects, and it is also the first new energy public REITs in Xinjiang Uygur Autonomous Region. Huatai Baowan Logistics REIT is a warehousing and logistics REIT with underlying assets located in Tianjin, Nanjing and Jiaxing.
As of May 13, 6 REITs products have been approved during the year, 7 products have been successfully listed during the year, and more than 10 products are in the stage of inquiry and feedback, laying a good foundation for further expansion and quality improvement in the future.
The two public REITs were approved on the same day
The public REITs market has ushered in a new force.
According to the official website of the China Securities Regulatory Commission, Huaxia TBEA New Energy REIT and Huatai Baowan Logistics REIT were officially approved by the China Securities Regulatory Commission on May 11, which is also the second batch of public REITs approved this year after four public REITs products were approved at the same time in April.
The two products that have just been approved also have their own characteristics. It is reported that Huaxia TBEA New Energy REIT is the first private enterprise in mainland China to invest in clean energy REITs project, the underlying asset of Huaxia TBEA New Energy REIT is located in Hami Photovoltaic Power Generation Project, Yizhou District, Hami City, Xinjiang Uygur Autonomous Region, the original owner and operation management agency is TBEA Xinjiang New Energy Co., Ltd. (hereinafter referred to as TBEA New Energy Company), the special plan manager is CITIC Securities, and the fund manager is Huaxia Fund. The custodian of the fund is Agricultural Bank of China Co., Ltd.
In particular, TBEA New Energy currently holds a large number of high-quality clean energy sources, which provide considerable potential for the growth of the platform. As of the end of 2023, TBEA New Energy has more than 30 new energy power plants with a capacity of about 3.2 GW. In the future, TBEA New Energy will successively incorporate new energy infrastructure projects that comply with relevant policies, operate smoothly and have stable revenues into the Huaxia TBEA New Energy REITs platform through expansion.
Baowan Logistics Holdings Co., Ltd. (hereinafter referred to as "Baowan Logistics"), the project initiator and operation management agency of Huatai Baowan Logistics REIT, is an integrated logistics operation organization under China Nanshan Group.
The underlying assets of the project include three warehousing and logistics parks, Tianjin Baowan Logistics Park, Nanjing Baowan Logistics Park and Jiaxing Baowan Logistics Park, all of which are located in the economically developed Beijing-Tianjin-Hebei and Yangtze River Delta transportation hubs, which are key areas in line with the national "14th Five-Year Plan" modern logistics development plan, with stable warehousing demand and significant location advantages. In the future, the project will give full play to the project's location advantages and informatization and intelligent service capabilities to share the broad investment opportunities in the REITs market for investors.
The regular issuance of public REITs has accelerated
With the approval of the above two public REITs at the same time, the number of products approved by public REITs has reached 6 since the beginning of this year.
At the same time, Wind data shows that as of May 13, three public REITs, including Huaxia Wanwei Warehousing and Logistics, China Merchants Fund China Merchants Highway, and CCB Goldwind New Energy, have entered the inquiry stage. More than 10 public REITs, such as China Merchants Science and Technology Innovation Incubator, Huaxia Capital Outlets, and Jianxin Jianrong Home, have received feedback. In addition, 6 public REITs, including ICBC Credit Suisse Hebei Expressway and E Fund Guangzhou Development Zone High-tech Industrial Park, have been approved and are ready to be issued, and AVIC Jingneng PV's mixed expansion has entered the application stage, further highlighting the normalized issuance of public REITs.
Since the beginning of this year, the public REITs market has ushered in 7 new products on the market, helping the secondary market to further expand. As of May 13, 2024, 36 products have been listed in the Chinese mainland public REITs market, and the overall issuance scale of the market has exceeded the 100 billion mark, reaching 118.4 billion yuan. The project covers a variety of asset types such as toll roads, industrial parks, water affairs, warehousing and logistics, clean energy, affordable rental housing, and consumer infrastructure, which has played a good scale effect and demonstration effect.
In the view of an industry insider, in the future, with the promotion of the normalized issuance of REITs and the construction of a multi-level market, the asset types of REITs will also be more abundant, and assets with relatively stable and controllable operations, relatively stable dividend income expectations, and strong operational resilience will be more likely to be favored by investors.
Another industry insider also said that the development of public REITs is conducive to mobilizing and guiding various factor resources to gather in the infrastructure field, helping enterprises to revitalize stock assets, and forming a virtuous cycle of investment and financing, which is an important practical achievement of developing a financial system with Chinese characteristics to serve the high-quality development of the real economy. In particular, after the policy clarifies the equity attributes of REITs products this year, it is expected to give better play to the valuation and pricing function of long-term investors on infrastructure projects, and guide the benign interaction between the primary and secondary trading markets of physical assets. At the same time, it will help the public REITs market to be issued on a regular basis and stimulate the vitality of revitalizing assets.
Editor: Joey
Review: Chen Mo