The Bejing Yintai Asset Backed Wealth Management Plan was launched on Aug. 19, 2016. Total fund size achieved 7.5 billion Yuan. It was the first and largest single asset back REIT-like product in China, and the second largest ABS product in China. Beijing Shine Asset was the exclusive financial advisor for this deal.

This ABS product served as a good mechanism to finance real estate development firms with long term, low cost capital to fuel corporate growth. The ABS market is on a trajectory path of expansion.

The First Asset Backed REIT-like Wealth Management Platform

Yintai Center REIT-like product was the first and largest REIT-like, asset backed product, and the second largest ABS product in China. The base asset generates stable cash return levels, credit enhancement measures were well received by the market. The subscription ratio was 3.08 times, among all subscription, Class A Securities raised 4 billion RMB, marginal multiple 3.82, nominal interest rate 4.0%. This set the new low for nominal interest rate for same credit rating products.

The Chinese REIT market has tremendous potential to unleash. As the major instrument for real estate developers to reduce cost of capital and re-synergize existing stocks, REIT-like instruments have received much government support, however, much more to be done to further improve the REIT market fundamentals.

The Power Alliance: Yintai + Hengtai + Shine Asset

China Yintai is a well diversified investment corporation that have investments in commercial and retail real estate, real estate development, property management, mining, agriculture, industrial parks, investment management, financial services, and philanthropy. China Yintai owns more than 100 holding companies and special purpose vehicles. China Yintai is a strategic partner of Shine Asset, and both firms have cooperated in multiple lines of business.

Hengtai Security, also a strategic partner of Shine Asset, was underwriting the deal. Since 2014, Hengtai Security has completed 27 ABS underwriting projects, and ranked No. 1 in terms of transaction volume. In addition, Hengtai Security was the co-underwriter for another 4 ABS deals with other leading security firms in the market. Asset types includes financing leases, public utilities, factoring, and ticketing. Hengtai Security is also the leader of innovative product design.

Together with renowned financial institutions and property owners, Shine Asset is determined to explore new opportunities with its existing and new partners.