Chinese asset managers apply to launch first commercial property-backed REITs (updated)
26/10/2023 10:59
(Adds backgrounds and details)
SHANGHAI, Oct 26 (Reuters) - The Shanghai and Shenzhen
stock exchanges received the first applications from three asset
managers seeking to launch publicly-traded real estate
investment trusts (REITs) backed by commercial properties.
Earlier this month, China's securities regulator expanded
the REITs scheme to include consumer-related commercial
properties, such as shopping malls and department stores, as
part of the government's efforts to help the ailing real estate
market.
China Asset Management submitted applications for two
products backed by so-called "consumption-related infrastructure
projects", while Harvest Fund Management and CICC Fund
submitted one each, according to filings on the Shanghai and
Shenzhen stock exchanges on Thursday.
The first batch of REITs submitted are backed by properties
originally owned by SCPG Holdings Co. Ltd., WuMart Commerce,
Shanghai Xingxiumao Commercial Management, and the commercial
unit of China Resources Land, according to exchange information.
China's REITs scheme was first introduced in 2020, with
limited to infrastructure projects such as tollways and
logistics centres. The programme was later expanded to include
affordable rental housing projects in 2022.
(Reporting by Shanghai Newsroom; Editing by Simon
Cameron-Moore)
((Li.Gu@thomsonreuters.com;))