Source: Financial Times 

On June 15, the first batch of four publicly-offered infrastructure securities investment funds (hereinafter referred to as "infrastructure public REITs") on the Shenzhen Stock Exchange (SZSE) issued a listing transaction announcement, and the relevant public REITs products will be officially listed on June 21, which marks the official landing of the domestic public REITs pilot work.

Since the issuance of the Notice on Promoting Real Estate Investment Trusts (REITs) Pilot Work in the Infrastructure Sector on April 30, 2020, the SZSE, in accordance with the unified deployment of the CSRC and with the strong support of the National Development and Reform Commission and other relevant ministries and commissions, has been making every effort to promote the pilot work by formally releasing the supporting rules and systems, successfully completing the technical system The reform on line, the orderly promotion of project review and offering, comprehensive market organization and investment education training, the preparatory work is ready.

According to the introduction, the first four infrastructure public REITs of SZSE are Shougang Green Energy, Shekou Industrial Park, Guangzhou Guanghe and Yangang REITs, with the underlying infrastructure projects located in two key areas of integrated development of Beijing, Tianjin, Hebei and Guangdong, Hong Kong and Macao, covering four mainstream infrastructure areas such as waste treatment and biomass power generation; industrial parks; toll roads and warehousing and logistics.

The four products were formally established on June 7, with issue prices ranging from RMB 2.30 to RMB 13.38 per share and a total fundraising scale of RMB 14.371 billion. From the issuance situation, investors subscribed enthusiastically, and the four products received market attention and recognition.

It is understood that the SZSE infrastructure public REITs fund code range is 180101 to 180999, subdivided into code segments according to different infrastructure project types, which is easy for investors to distinguish and query. As the risk-return characteristics are different from those of financial products such as stocks, bonds and funds, the infrastructure public REITs set a limit of 30% on the first day of listing and 10% on the first day of non-listing, and no less than one liquidity service provider is selected for each product to provide bilateral quotes and other services to improve the secondary market liquidity mechanism. Fund managers and SZSE members should conscientiously implement the investor suitability management system, urge ordinary investors to sign a risk disclosure letter when they first purchase infrastructure public REITs, understand the product structure and risk-return characteristics of public REITs, establish the concept of long-term investment, value investment and rational investment, participate in transactions legally and compliantly, and jointly maintain the long-term healthy market for infrastructure public REITs. The development of infrastructure public REITs market will be maintained.

The infrastructure public REITs pilot is another important reform and innovation initiative in the capital market. The SZSE said it will resolutely implement the spirit of General Secretary Xi Jinping's important instructions on capital markets and the decision-making of the CPC Central Committee and the State Council. Under the overall leadership of the CSRC, consistently work in an "open, transparent, honest and strict" manner, and work with all parties in the market to promote the public offering of infrastructure REITs with one heart and one mind. We will strive to make public REITs a mainstream financial product in China, play the function of capital market hub in a better way, support the construction of Guangdong-Hong Kong-Macao Bay Area and the early demonstration zone, and serve the overall economic and social development of the country.