Infrastructure REIT’s Expected to Drive Expansion in Effective Investment: Bank of China Economist

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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.”

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