China’s REIT Scope Expands to Include Clean Energy Projects

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The scope of assets encompassed by publicly offered real estate investment trusts (REIT’s) in China has expanded to include clean energy projects.

On 15 February the Penghua Clean Energy REIT (鹏华清洁能源REIT) was officially reviewed by the Shenzhen Stock Exchange, becoming the first clean energy publicly offered REIT on either the Shanghai or Shenzhen bourses.

The underlying asset for the product is the eastern clean energy power plant in the Dapeng New District of Shenzhen – a natural gas facility which is reportedly one of the largest and most advanced in the city.

There are currently 11 REIT products being traded on Chinese exchanges, covering areas including industrial parks, highways and warehouses, while products based on welfare leasing housing and infrastructure are currently in the process of development.