A leading Chinese economist says that the launch of infrastructure real estate investment (REIT) trials in China will help to drive effective investment levels.
Guan Tao (管涛), chief economist at Bank of China International, said that infrastructure REIT’s will become a key focal point for “expanding effective investment.”
Publicly offered REIT’s are the best means for the public to invest in infrastructure assets. Publicly offered REIT’s have high-quality infrastructure as their investment target, and can convert certain assets in the real economy that have the most value and the most stable investment returns into assets that the public can invest in, for which the investment threshold is low, investment transactions are convenient and information disclosure is public.
Guan made the remarks on 29 May at the “2020 Summer Online Investment Strategy Conference” (2020夏季线上投资策略会) held by Sina.
On 30 April the China Securities Regulatory Commission (CSRC) and the National Development and Reform Commission (NDRC) jointly issued the “Notice Concerning Concerning Work in Relation to Advancing Infrastructure Real Estate Investment Trust Trials” (关于推进基础设施领域不动产投资信托基金（REITs）试点相关工作的通知).
According to the Notice CSRC and NDRC will “fully make use of capital markets to actively support the undertaking of REIT trials for high-quality infrastructure in key areas and industries in accordance with the principles of the market and rule of law.”