Summary
【shocked! On April 22, the Securities Association of China announced that China Communications Construction Expressway REIT violated Article 1 of the “Management Rules” during the offline subscription process of China Communications Construction Expressway REIT The list of 6 placement objects specified in Article 17 includes a private placement product under Shanghai Jiupeng Assets and five private placement products under Ningbo Jize Investment. According to sources, the reason for the above products being included in the restricted list is that “the subscription funds were not paid in full and on time”. (Broker China)
Investors are vying to buy HuaxiaCCCCThe phenomenon of “abandoned purchases” has appeared in high-speed REITs!
April 22, ChinasecuritiesIndustry Association announced the HuaxiaCCCCDuring the offline subscription process of Express REIT, there were 6 placement targets that violated Article 17 of the “Management Rules”. The list includes a private placement product of Shanghai Jiupeng Assets and five private placement products of Ningbo Jize Investment.
According to sources, the reason for the above products being included in the restricted list is that “the subscription funds were not paid in full and on time”.
HuaxiaCCCCAs soon as the high-speed REIT came out, it ushered in enthusiastic subscription of funds, and the public offering part even refreshed the public offeringfundIt is not easy for these private equity products to “break through” the quotations of major institutions, and it is puzzling that they fail to pay in time.
It is worth noting that China Communications Construction Expressway REIT is the most dazzling presence in this year’s sluggish issuance market: on April 12, theFund announcementIt is shown that the total amount of gold in this issuance exceeds 150 billion yuan, and the allocation ratio of the public offering part is 0.84%.
In sharp contrast,Bank of CommunicationsWholly-owned subsidiary Bank of Communicationsfinancial managementThe fund has successfully invested in the fund with a full allocation of more than 200 million yuan. The relevant person in charge of Bank of Communications Financial Management said that he will continue to pay attention to and seize the investment opportunities of REITs in infrastructure, rental housing, energy, water conservancy infrastructure and other aspects, and use REITs as a strategy Variety for layout.
The most popular REIT was “abandoned” by two private equity firms
ChinasecuritiesOn the evening of April 22, the industry association announced the six placement objects that violated Article 17 of the “Management Rules” during the offline subscription process of China Communications Construction Express REIT, and listed them on the restricted list for a limited time of April 2022. October 25 to October 24, 2022. The restricted list includes a private equity product of Shanghai Jiupeng Assets and five private equity products of Ningbo Jize Investment.
The specific content of Article 17 of the “Management Rules” is that when offline investors and relevant staff participate in the offline inquiry and subscription business of infrastructure funds, the following behaviors shall not be committed:
(1) Using another person’s account, multiple accounts or entrusting another person to quote;
(2) colluding with other interested parties such as investors, original stakeholders, fund managers or their financial advisors to make quotations;
(3) Using inside information and unpublished information to make quotations;
(4) There is no basis for pricing, a rational quotation is not made on the basis of sufficient research, and the quotation decision-making procedure is not strictly performed to make a prudent quotation, or deliberately lower or raise the price;
(5) The amount to be subscribed has not been reasonably determined, and the amount to be subscribed exceeds the total assets or capital scale of the allotment target;
(6) Providing a valid quotation but not participating in the subscription or subscribing in full;
(7) Failure to pay the subscription funds in full and on time;
(8) Allotment objects participating in the offline price inquiry and their associated accounts subscribe for part of the fund shares through the sale to public investors;
(9) Failing to abide by relevant commitments after being allocated;
(10) Accepting financial assistance, compensation, rebates, etc. provided by the original owner, the fund manager or its financial advisor, and other interested parties;
(11) Other circumstances that are not independent, objective, dishonest, or incorrupt, or other circumstances that affect the order of issuance.
According to people familiar with the matter, the six placement targets violated Article (7) of the rules, that is, “failure to pay the subscription funds in full and on time.”
China Communications Construction Expressway REIT is the most dazzling presence in this year’s sluggish issuance market: on April 12, the fundannouncementIt shows that the total amount of gold in this issuance exceeds 150 billion yuan, and the allocation ratio of the public offering part is 0.84%. This means that investors who purchase 10,000 yuan can only be allocated 84 yuan. Such a low placement ratio has set a new record for the placement ratio of public fund products, and China AMC China Communications Construction REIT has become the only public fund with a placement ratio of less than 1%.
In addition, the fund conducted an offline inquiry on March 29, and received inquiries and quotations from 160 placement objects managed by 68 offline investors. After the valid quotations are determined, the number of investors with valid quotations for the offline sale is 64, the number of placement objects under management is 149, and the total number of valid subscriptions is 6,649.7 million, which is 38 times the number of initial offline offerings. It is not easy to “break out of the siege” from the quotations of major institutions. The “abandoned purchase” behavior of Shanghai Jiupeng and Ningbo Jize this time is quite surprising.
April 22,brokerageChinese journalists fromBank of CommunicationsThe sources were informed that,Bank of CommunicationsA wholly-owned subsidiary, Bank of Communications Wealth Management successfully invested in China Communications Construction Expressway Real Estate Investment Trust (REIT), with a full allocation of more than 200 million yuan, ranking among the top among wealth management companies in the Yangtze River Delta, helping highway transportation, etc. Transformation and upgrading of infrastructure investment and financing.
The relevant person in charge of Bank of Communications Wealth Management said that it will continue to focus on the goal of “anchoring high-quality development”, actively respond to the country’s various economic decisions and deployments, and continue to pay attention to and seize REITs’ investment in infrastructure, rental housing, energy, water conservancy infrastructure and other aspects. Opportunity to deploy REITs as a strategic variety.
Recent favorable policies
Recently, the REITs business has frequently ushered in favorable policies.
On April 20, the China Banking and Insurance Regulatory Commission and the Ministry of Communications jointly issued thebankindustryInsuranceOpinions on Supporting the High-quality Development of Highway Traffic” (hereinafter referred to as the “Opinions”), encouragingbankInsuranceThe institution supports the construction of highway transportation in compliance with laws and regulations, and promotes the high-quality development of highway transportation.
Regarding REITS, Article 5 of the “Opinions” mentioned that business innovation should be carried out in a safe and orderly manner, encouragingbankInsuranceThe institution provides financial support for eligible green and low-carbon road projects, helping the transportation sector to achieve carbon peaking and carbon neutrality.Under the premise of compliance with laws and regulations and controllable risks, transportation enterprises are supported tosecuritiesEffectively revitalize the road stock assets by means of ABS (ABS) and real estate investment trusts (REITs) in the infrastructure field.
CICCAnalysis shows that expressway REITs have strong fixed income-like attributes and fixed income + allocation value: “Although expressway REITs have a long term, their IRR (internal rate of return) is relatively high relative to institutional capital costs and the rate of return of other fixed income assets. Strong attractiveness, while providing a certain degree of flexibility, the anti-drawback ability is also better than other public REITs.”
Going back further, on April 15th, the Shanghai and Shenzhen Stock Exchanges announced that by learning from the experience of the overseas REITs market and referring to the major assets of listed companiesreorganizationand refinancing related regulations, drafted the “Public Offering of InfrastructureStock investmentFund (REITs) Business Guidelines No. 3 – Newly Purchased Infrastructure Projects (Trial)” (referred to as the “Guidelines”). The “Guidelines” are the basic rules for the Exchange to regulate and guide the existence of infrastructure funds, newly purchased infrastructure projects and related expansion, information disclosure and other matters. Key matters such as share offerings are regulated. In the future, public REITs will be the main body of asset listing, and the arrangements for newly purchased infrastructure projects and expansion of offerings will be well-founded.
Shenwan Hongyuanreal estate industry chiefanalystYuan Hao said that the fundraising mechanism is an important feature of REITs products and an indispensable part of market construction. The current public offering REITs products are scarce and in short supply, and the current market is facing a situation of loose liquidity and asset shortage. The expansion of REITs is conducive to meeting investors’ needs for stable investment.
He believes that the introduction of an expansion mechanism in the new regulations is conducive to stabilizing secondary market prices and improving market liquidity. Given that most of the underlying assets of international REITs are still commercial real estate, the follow-up inclusion is worth looking forward to. In the short term, the expansion of REITs will benefit the revitalization of existing assets such as warehousing logistics and industrial parks, and the scale of existing listed entities has achieved steady growth. After the expansion of REITs to commercial real estate in the future, the industry operation model is expected to shift from an asset-light operation to an asset-light operation model, and the development + holding + management chain will become more mature; the financing model will change from short-term debt financing to more long-term equity financing Financing, optimizing debt capital structure, helping real estate companies and local governments to deleverage.
(Article source: Broker China)
(Original title: Stunned! REIT products with a placement ratio of 84:10,000, 6 private placement products are not paid enough, what happened? Regulatory penalties are coming)
(Editor in charge: 436)