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【Financial Str. Release】Public offering of 1st batch of 9 infrastructure REITs around the corner

May 21, 2021


Abstract : The first batch of nine infrastructure real estate investment trusts (REITs) will soon be publicly offered on China's Shanghai and Shenzhen stock exchanges alongside debut of their request for quotation (RFQ) announcements since Wednesday, reported Xinhua-run Xinhua-Finance Friday.

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BEIJING, May 21 (Xinhua) -- The first batch of nine infrastructure real estate investment trusts (REITs) will soon be publicly offered on China's Shanghai and Shenzhen stock exchanges alongside debut of their request for quotation (RFQ) announcements since Wednesday, reported Xinhua-run Xinhua-Finance Friday.

The nine infrastructure REITs are planned to raise about 30 billion yuan of capital in total, with their underlying assets including toll road, industrial park, storage and logistics facilities, polluted water and garbage treatment projects, and biomass power generation projects located in the Beijing-Tianjin-Hebei area, Yangtze River Economic Belt, Guangdong-Hong Kong-Macao Greater Bay Area, and the Yangtze River Delta.

Strategic investors are likely to be the main source of investors for the infrastructure REITs. Previously, the to-be-offered infrastructure REITs face objective obstacles in being included in the scope of products allowed to be invested by part of institutions, said market players.

Under such circumstances, the report said a "white list" alike classification of publicly-offered REITs products permitted to be invested by insurers has been prepared by Thursday, in an effort to further cultivate professional investor teams.

In principle, investment in the infrastructure REITs will be deemed as property investment for administration, according to the report citing an industry insider, saying that management institutions of the infrastructure REITs shall be qualified for real estate investment and their investment in the infrastructure REITs shall be placed under the supervised proportion of property investment. Besides, institutional investors are required to report regularly their investment in the publicly-offered infrastructure REITs.

In terms of assets diversification, the publicly-offered REITs have loose links with stocks and bonds and can optimize the overall rate of returns for investors, which attracted active participation from institutional investors, market watchers said. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)

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Keyword: infrastructure investment investors REITs offered

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