Meng Xiaosu believes that REITs should have a Chinese design. He advocates that affordable housing should be used as REITs, and high-quality real estate dominated by the government should be taken as the basis, and the government and the original commercial institutions should rent back to ensure the income. (Photo by Wu Zhenguo, people's daily.com)

Sanya, August 9 (Wu Zhenguo intern Yin Mingyao) this morning, on the scene of the 2017 Boao real estate forum, Meng Xiaosu, chairman of China real estate development group, said in his keynote speech that it is necessary to speed up the pilot real estate trust and investment funds (REITs) and promote real estate securitization based on the high-quality real estate dominated by the government.

Meng Xiaosu pointed out that at present, the central government clearly requires strengthening supply side reform, including institutional innovation, product innovation and management innovation. And financial product innovation is also among them.

Meng Xiaosu explained that the real estate trust and investment fund is a kind of financial innovation for the real estate rights and interests to enter into the capital market. It distributes the rent of the lessee to the investors half a year, and this kind of securities can be circulated in the market.

As early as 2008, the general office of the State Council once sent a letter to request REITs pilot. According to the experience of other countries and regions, REITs is used to hold rental properties, which can help enterprises to finance. "But domestic REITs as a direct financing channel for development, resulting in many problems, thus delaying many years." Meng Xiaosu expressed regret.

He believes that REITs should have a Chinese design. For example, he advocated that affordable housing should be used as REITs, and high-quality real estate dominated by the government should be taken as the basis, and the government and the original commercial institutions should rent back to ensure the income. "At the same time, this revenue stream can also be listed. This way can reduce local debt, realize capital, and further promote infrastructure construction. "

According to Meng xiaosudi's assumption, it can be agreed that after the fund matures, for example, after 20 or 25 years, the government will buy back the assets at the original price. "This can reduce the obstacles to asset evaluation and prevent the loss of state-owned assets."

This year, the central bank, the Ministry of finance, the Securities Regulatory Commission and other departments also jointly issued a document to promote the development of REITs and encourage asset securitization of PPP projects.

At present, REITs pilot has been launched in many provinces and cities. Meng Xiaosu finally said that the future of REITs landing and real estate securitization is optimistic.