Deloitte Assisted WANXIN Media to Issue Industrial Bank-Wan Xin Yue Jia Real Estate Investment Trust ("REITs")
Real Estate Investment Trust ("REITs") originated in the United States, which essence is a set of capital investment plan related to real estate managed by a professional management team. Through REITs, ordinary investors can hold a small portion of property rights, such as property, office building, or shopping mall, and get benefits from the long-term operating income of these projects.
On September 30, 2014, the People’s Bank of China ("PBOC") released "China Banking Regulatory Commission on further providing the work of house financial service" proposed to actively and steadily carry out the pilot work of Real Estate Investment Trust ("REITs"). Currently Ministry of Housing and Urban-Rural Development deployed in preparation for REITs' pilot program in Beijing, Shanghai, Guangzhou and Shenzhen.
On September 30, 2016, Anhui Xinhua Media Co., Ltd. (referred as "Wanxin Media") adopted the resolution of establishing a Real Estate Investment Trust ("REITs") under Chinese regulatory requirements and operation model with a series of transaction arrangements including setting up project companies by fair value contribution of real estate properties during the third Extraordinary General Meeting of 2016. The aim is to comprehensively promote business transformation, revitalize corporate assets, and improve the efficiency of asset operation. Wanxin Media had obtained the "Decision of the People's Bank of China on Granting the Administrative License" (Yinshichangzhunyuzi  No. 247) and successfully made the public offering over the inter-bank market on February 20, 2017, which indicates the issuing of the first publicly offered REITs over the Chinese inter-bank market.
Deloitte, as professional accounting services and tax advisory institution, participated in the whole process of the project arrangement, transaction structure design and trust plan establishment of Wanxin Media. Deloitte’s capacity for professional and experience has promoted release of first stage of Wanxin Media company’s Real Estate Investment Trust plan ("REITs"), which named YUEJIA; and Wanxin Media has become the first listed company from cultural category which issued real estate investment trusts (REITs) successfully.