BEIJING, April 25 (Xinhua) -- China Securities Regulatory Commission (CSRC) will add real estate investment trusts (REITs) to the Stock Connect eligible trading targets to further enrich related investment choices, reported Shanghai Securities News on Wednesday.
CSRC announced the inclusion together with other measures to boost the mainland-Hong Kong capital market cooperation on April 19, saying that qualified REITs listed on capital markets of the Chinese mainland and Hong Kong will be included into the eligible trading targets for Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect programs.
Currently, REIT markets in the Chinese mainland and Hong Kong differ much from each other.
By April 19, the 11 eligible REITs listed on Hong Kong capital market boasted a total market capitalization of 103.7 billion yuan with relatively few types of underlying assets while those listed on the Chinese mainland capital market had more diversified underlying assets including expressways, industrial parks, energy and logistics programs, etc.
Industry experts said that inclusion of REITs into the eligible trading targets for Stock Connect is helpful to advance high-level institutional opening up of China's capital market and foster internationalization and market-oriented development of publicly-offered REITs.
(Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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