Core Viewpoint - The article discusses the challenges faced by private enterprises in issuing public REITs, highlighting the misconception that regulatory hurdles are the main barrier, while the real issue lies in the stringent asset valuation requirements imposed by these enterprises [2][4]. Group 1: Regulatory Environment - Regulatory bodies encourage private enterprises to issue REITs, and local governments often support promising private companies [2]. - The regulatory requirement for "net cash recovery" differs from the valuation needs of private enterprises, which must cover existing debts and provide surplus cash [4]. Group 2: Asset Valuation Challenges - Private enterprises have a "hard requirement" for asset valuation that is more stringent than the standards set for public offerings, often prioritizing immediate cash returns over long-term strategic benefits [2][4]. - For a project with existing bank loans of 1 billion, the asset valuation must exceed 1.65 billion to cover debts and provide cash returns, illustrating the high valuation pressure [4]. Group 3: Financial Metrics - A project with a net operating income (NOI) of 60 million and a loan interest of 50 million results in a capitalization rate of only 3.6%, which is generally not acceptable to investors or regulators [5][6]. Group 4: Potential Solutions - Suggestions for improving the situation include relaxing the self-holding ratio requirements, allowing for the pledge of self-held shares, and adjusting key valuation parameters dynamically based on market conditions [7][8]. - Shortening the approval cycle for public REITs could help private enterprises respond more quickly to urgent financial needs, as the current process can take up to two years [9]. Group 5: Market Dynamics - Private enterprises, due to their survival and competitive pressures, are more focused on asset management and market trends, making them theoretically suitable for operating REIT assets [10]. - The current financial strain on private enterprises, coupled with unfavorable market conditions, leads to their high asset valuation demands, which could be alleviated through adjustments in mechanisms and approval processes [10].