2024 RT Amination Banner.gif

China Daily

News> Business> Content
Sunday, June 20, 2021, 11:45
Moody's: China's Infra REITs expand funding means for sector
By Xinhua
Sunday, June 20, 2021, 11:45 By Xinhua

BEIJING - Infrastructure real estate investment trusts (Infra REITs) can generate new capital to help fund the sector's expansion and provide companies with additional liquidity and deleveraging opportunities, according to a recent report from Moody's Investors Service.

Although we expect China's Infra REIT market to remain small over the next two to three years, it could expand sizably for infrastructure assets over the next decade.

Ralph Ng, vice president and senior analyst at Moody's Investors Service

ALSO READ: Investment in logistics, roads to get REITs boost

"Although we expect China's Infra REIT market to remain small over the next two to three years, it could expand sizably for infrastructure assets over the next decade," noted Ralph Ng, vice president and a senior analyst at Moody's.

Infra REITs allow companies to monetize their infrastructure assets and apply sale proceeds to future finance projects or debt reduction. The assets' operating records and ability to generate positive cash flows will also reduce risks for investors, the report noted.

READ MORE: China's pilot REITs drive stock surge on mainland bourses

The agency also noted development challenges in the sector, including a less efficient tax structure, regulatory issues and uncertainty about the supply of eligible assets.


Share this story

CHINA DAILY
HONG KONG NEWS
OPEN
Please click in the upper right corner to open it in your browser !