China ** reporter Lu Huijing's public REITs market is about to usher in a blockbuster long-term investment funds. Recently, the Ministry of Finance and the Ministry of Human Resources and Social Security drafted the "Measures for the Administration of Domestic Investment in National Social Security ** (Draft for Comments)", which intends to formally include public REITs in the scope of social security ** investment. Many industry insiders believe that this move will help boost the confidence of the public REITs market, stabilize investor expectations, and introduce long-term capital to the market. In the view of the above-mentioned people, the current risk release of the public REITs market has been relatively sufficient, and the long-term investment value has gradually emerged. The entry of social security into the market is expected to enrich the investor structureSupport the further expansion of the REITs market
Recently, the Ministry of Finance and the Ministry of Human Resources and Social Security drafted the "National Social Security ** Domestic Investment Management Measures (Draft for Comments)" (hereinafter referred to as the Draft for Comments), in which the investment scope and proportion of Chapter III clearly pointed out that the national social security ** can invest in public offering infrastructure ** investment ** (hereinafter referred to as "public REITs"), in terms of investment ratio, according to the cost calculation, REITs and ** and other equity financial products are uniformly controlled in proportion, and the total shall not be higher than 40%. In the view of Huaxia, as one of the most important long-term funds in the capital market, social security adheres to the concept of long-term investment, value investment and responsible investment, and carries out investment operation and management in accordance with the policy of prudent investment, safety first, risk control and return improvement, so as to ensure safety, achieve value preservation and appreciation, and play the role of "stabilizer" and "wind vane" in the capital market. Huaxia** said that in the short term, the draft for comments is similar to the announcement issued by a number of public offerings in July to explicitly include public REITs in the investment scope of some of its public offerings, which has a positive effect on boosting market confidence and sentiment and stabilizing investors' expectations. In the medium and long term, if the social security ** can participate in the allocation of public REITs (especially the allocation of the secondary market), it is expected to give full play to the pricing power of long-term funds, guide reasonable valuation expectations, and at the same time alleviate the liquidity problem in the early stage of market construction, enrich the investor structure, and support the further expansion and sustainable development of China's REITs market. Zhu Yuanwei, president of the Ruisi Real Estate Finance Research Institute, pointed out that public REITs have been allowed to be included in the scope of social security investment in the special approval, and now the Ministry of Finance has issued a draft for comments, intending to clarify it again, sending a very positive signal to the market. In the future, if social security** can invest in REITs, it will help optimize the investor structure of China's REITs market, play the role of long-term capital ballast and stabilizer, and further promote market construction and high-quality development. "Yi Huiman, chairman of the China Securities Regulatory Commission, recently proposed to 'promote the expansion and quality of the REITs market', and we understand that one of the important connotations is to further expand medium and long-term funds**. AVIC** emphasized. Liu Xuan, manager of Bosera Infrastructure Investment Management Department, also agrees with the above views, and he said that the release of the draft will help guide social security with long-term investment characteristics to steadily participate in REITs investment, boost the confidence of the public REITs market, and help the healthy and stable development of the domestic public REITs market. But he also reminded that in the short term, it will still take some time for the policy to be implemented and social security funds to enter the market. It is expected to bring long-term capital to public REITs
On the one hand, the public REITs are forced to pay a high proportion of dividends, which can provide long-term stable cash flow and match the nature of the funds of the social security **, and on the other hand, the social security market is also expected to bring stable long-term funds to the public REITs market. Huaxia** pointed out that from the perspective of asset characteristics and the experience of mature markets, REITs are very well matched with the needs of long-term funds such as social security**, insurance funds and annuities. "First of all, China's public REITs invest in long-term stable infrastructure assets, with mandatory high proportion of dividends, can provide investors with long-term stable cash flow, and the long-term attributes of social security ** are highly matched, and can achieve the coordination of assets and liabilities in terms of term and structure. In the context of the current long-term interest rate decline and stricter financial supervision, public REITs can help solve the problem of "asset shortage" and provide long-term, stable and moderate risk-return investment varieties for long-term funds, including social security**. Huaxia ** further analysis. On the one hand, public REITs can provide long-term stable returns for long-term funds, and on the other hand, they also play an important role in diversifying portfolio risks, according to ChinaAMC**. "In the long run, REITs have a low correlation with the income of major types of assets such as ** and bonds, and the allocation of REITs may marginally optimize the asset allocation of social security ** and diversify investment risks. According to NAREIT data, the proportion of overseas pension allocation to physical assets has shown an upward trend in the past 20 years, such as the proportion of physical assets in the asset allocation of DB pension in the United States from 3 in 19983% rose to 69%, of which the proportion invested in listed REITs increased from 04% to 07%。Liu Xuan also said that the draft for comments for the first time mentioned that social security ** is allowed to invest in public REITs, which may have a certain supporting effect on market sentiment in the short term. "In the long run, with the formal introduction of the relevant system and the gradual entry of social security ** incremental funds, the investor structure of the public REITs market is expected to be further enriched, and market liquidity and pricing efficiency may be improved, thereby promoting the virtuous cycle of the public REITs market and promoting the overall quality and efficiency. However, due to the small capital capacity of the current public REITs market, the scale of a single public REITs is limited, and the capital injection of social security may be a long-term process. Liu Xuan said.
Public REITs with stable dividends and better fundamentalsIt is expected to be favored by social security funds
A number of industry insiders said that in the process of social security funds entering the market in the future, some public REITs with stable dividends, better fundamentals and large capital capacity are expected to be favored by social security funds. Liu Xuan said that investing in public REITs products will help social security ** increase the tools for obtaining stable cash flow returns, and help optimize the risk-return ratio of the entire portfolio. In his view, the current risk of the public REITs market has been fully released, and the long-term investment value has gradually become prominent. "Public REITs with strong overall operating capabilities, relatively more stable dividends, better underlying asset fundamentals, and larger capital capacity in the future may be more likely to be favored by social security**. Including REITs in the scope of investment is conducive to the long-term stable rate of return of social security**. From the perspective of the investment purpose of social security**, REITs products with stable value and excellent dividend performance are expected to gain more preference. AVIC** has a similar view. A public REITS** manager also pointed out that the unique risk-return characteristics of public REITs will help the social security ** portfolio to better diversify risks and optimize portfolio allocation, so as to obtain the possibility of better realizing investment returns. He believes that the asset types of consumer infrastructure public REITs include shopping malls, community businesses, supermarkets, etc., which are closer to consumption and people's livelihood, and have the characteristics of good occupancy rate and long operation time, which are expected to promote investment and development in the consumption field, improve the consumption environment, optimize consumption scenarios, and promote the high-quality development of consumption infrastructure. It can also expand domestic demand, boost consumption, and promote high-quality economic development. Editor: Xiaomo Review: Xu Wen.