BEIJING, July 5 (Xinhua) -- China's National Development and Reform Commission (NDRC), the top economic planner, required Chinese local authorities to strengthen supports to and guidance over the infrastructure real estate investment trusts (REITs) nationwide, reported Xinhua-run Xinhua Finance citing a circular released by NDRC on July 2.
The move followed the formal listing of the first batch of publicly-offered infrastructure REITs on bourses in China on June 21, aiming to boost healthy development of the infrastructure REITs market.
As the circular said, NDRC required stronger management by local authorities over underlying infrastructure projects to be reserved for the REITs pilot.
Local branches of NDRC are required to timely sort out and pool qualified infrastructure projects and such infrastructure projects are not allowed to participate in the infrastructure REITs pilot as they are not included in local reserve project database.
NDRC vowed in the circular supports to starting and accelerating construction of new projects invested by capitals recovered through the pilot infrastructure REITs in an effort to foster sound circulation of investment.
Under the premise of strict risk control, the circular required local branches of NDRC to timely report qualified infrastructure projects to the NDRC and projects that fail to meet requirements of the infrastructure REITs pilot are prohibited to reporting to NDRC.
Previously on June 21, China's first batch of infrastructure REITs started listing on Shanghai Stock Exchange and Shenzhen Stock Exchange and their underlying assets are mainly to complement investment in infrastructure sectors with insufficient investment. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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