China’s Securities Regulator to Push for Greater Funding of Infrastructure REIT’s via Stock Exchanges

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The China Securities Regulatory Commission (CSRC) is launching new initiative for the expansion of funds for infrastructure real estate investment trusts (REIT’s) via the country’s bourses.

On 31 May CSRC issued the “Infrastructure Real Estate Investment Trust Funding Expansion Guidelines” (基础设施领域不动产投资信托基金扩募指引), for the purpose of “comprehensively strengthening infrastructure development and expanding long-term funding channels.”

CSRC said that it would guide securities exchanges in the drafting and release of a list of “Newly Acquired Infrastructure Projects (Trials)” (新购入基础设施项目(试行)), to support listed REIT’s in acquiring assets via methods such as funding expansion.

CSRC also aims to “expand the market development strength of REIT’s,” and drive the “high-quality development of a multi-tier capital market.”

The Newly Acquired Infrastructure Projects catalogue will clarify conditions, procedures and information disclosure requirements for the acquisition of new infrastructure projects, as well as arrangements in relation to fund-raising and sale.

“The emphasis will be on consistency between funds expansion and initial sale, strengthening of insider information management and prevention of conflicts of interest, and upholding an emphasis upon the interests of owners,” said CSRC.