Securities Times | Public REITs Usher a "Good Start" as the First Private Enterprise Warehousing and Logistics REITs Land on SSE
The Shanghai Stock Exchange (SSE) public REITs market ushers a "good start". On February 8, 2023, the first private enterprise warehousing and logistics REITs - Jingdong REIT - was listed on the SSE. By the close of trading, it had risen by 11.64% to 3.923 yuan.
As the first listing project in 2023 and the first "green light" investment case for large platform enterprises, Jingdong REIT will provide a practical reference for the capital market to support the development of private economy and boost household consumption.
It is reported that this year, the SSE will better serve the building of a new development pattern and high-quality development by optimizing key systems, safeguarding the smooth running of the market and vigorously promoting the regular offering of public REITs.
Supporting private economy, discovering high-quality projects and forming demonstration effect
Jingdong REIT was sponsored by Jingdong Group, a leading private enterprise. The listing of Jingdong REIT on the SSE sends a clear signal that the capital market supports the healthy development of the private economy, which shows a strong demonstration and leading effect to private enterprises participating in the REITs pilot.
As the first private enterprise warehousing and logistics public REITs in China, Jingdong REIT has well-received recognition in the market during its offering. Jingdong REIT raised a total of 1.757 billion yuan, total receiving subscriptions from strategic investors, offline investors and public investors of 71.816 billion yuan. The subscription from offline investors was over 126 times, with a public placement ratio of 0.46%. Its opening price was 3.862 yuan and the intraday prices were all above the issue price, with a total turnover of over 193 million yuan.
The underlying assets of Jingdong REIT are modern warehouse and logistics park projects in Chongqing, Wuhan and Langfang. With a wide radiation range and a sound operation history, they have played a crucial role in maintaining supply chain stability, promoting development of regional economy and boosting household consumption. As a typical real economy, the warehousing and logistics industry is characterized by a long period of investment return and a high cost of fund occupation, which in a way limits the participation of private enterprises in its development. Through the issuance of infrastructure REITs, the existing assets and a capital management model of "investment & construction - operation & incubation - listing & exit - asset operation" are expected to be revitalized and built, so as to address the practical difficulties of private capital's participation in infrastructure project investment, enhance the confidence and stimulate the vitality of private investment.
Focusing on revitalizing the existing assets, the SSE promotes the high-quality development of REITs market
With the accelerated promotion and implementation of REITs IPO and its expansion projects, infrastructure REITs are moving toward a new stage of regular offerings. According to statistics, as of February 8, 2023, 16 REITs products had been listed on the SSE, raising 56 billion yuan, with a total market value of about 61.1 billion yuan. The recovered funds had driven a total investment amount of nearly 300 billion yuan in new projects. This realized both quantity and quality promotion in serving the real economy, highlighting the effect of supporting existing assets revitalization and promoting effective investment.
In 2023, the SSE will steadily expand the scope and scale of REITs pilot, support the listing and expansion of more infrastructure REITs, constantly promote the development of REITs market in depth and breadth, and better contribute to the high-quality development of the real economy.
Relevant Officials of SSE said that the SSE would further focus on key areas, promote the expansion of the scope of REITs pilot, cover new energy, new infrastructure and other infrastructure sectors with the least delay, and accelerate the building of government-subsidized rental housing segment in the REITs market. Through working on key areas rich in REITs projects, the exchange aims to establish a comprehensive promotion mechanism to ensure the supply of project resources for achieving the regular development of REITs. Through supporting the implementation of high-quality projects of key enterprises, the SSE will leverage the demonstration and driving role of major benchmark projects. The bourse will accelerate the implementation of the first batch of expansion projects to form a sound development pattern driven by both "new product launches" and "expansion of funds". Efforts will be made to improve supporting rules and promote special legislation to consolidate the foundation of the legal system, optimize the offering and trading arrangements and clarify the information disclosure standard, so as to promote the smooth and orderly running of the market.