On 31 March 2023, the first batch of four infrastructure REIT fundraising expansion projects were approved by CSRC for registration change, marking a crucial step forward for the regular issueof infrastructure REITs.

TheOpinions of the General Office of the State Council on Further Activating Existing Assets and Expanding Effective Investment (G.B.F. [2022] No.19)called forefforts to “build and improve the mechanism for fundraising expansion and explore the building of a multi-tieredinfrastructure REITs market”. In compliance with the unified plans of CSRS, SZSE implemented the “ten measures to advance the regular issueof REITs”, and combined innovation with regulated operations. To be specific, SZSE stepped up research on the mechanism for REIT fundraising expansion, released the guidelines for REIT fundraising expansion, and organized market training. Also, SZSE launched the targeted offering system online, improved the review & approval system and information disclosure website, and established the voting system for fund shareholder meetings. Through these efforts, SZSE aimed to secure the implementation of the additional fundraising projects.

Two of the first batch of REIT additional fundraising projects approved for listing on SZSE are Bosera Shekou Industrial Park REIT and Hotland Innovation Yantian Port REIT. Listed over a year ago, both REITs have been running steadily with a complete governance structure, which paved the way for fundraising expansion. Through the additional fundraising, Bosera Shekou Industrial Park REIT plans to purchase the Phase II tech enterprise accelerator project in China Merchants Intelligence Town (Guangming Science Park). Jointly launched by Shenzhen Municipal Government and China Merchants Group, the project is an industrial base that pools enterprises in intelligent manufacturing, biopharmaceuticals, new materials, next-generation information technology and other high-tech sectors. By expanding the fundraising, Hotland Innovation Yantian Port REIT intends to acquire Century Logistics Park, a high-standard warehouse project close to the current underlying asset of the REIT in Yantian Comprehensive Bonded Zone, to create synergetic effect. Moreover, backed by Yantian Port, the only one honored “Best Terminal in Asia” twice in China, the asset enjoys sound locational and transportation advantages. By far, SZSE has seen the completion of initial offering for nine public REITs, with the funds raised exceeding CNY 24 billion.

Launching REIT additional fundraising projects is a key move taken to further promote the regular issue of REITs and the regulated and healthy development of the market. It will accelerate the positive interactions between stock assets and additional investment, drive the reasonable expansion of effective investment, and facilitate the high-quality development of infrastructures.

Next, SZSE will further learn and implement the guiding principle of the 20th CPC National Congress, and faithfully follow the requirements specified in the report on the work of the government and the “12 measures for further advancing the regular issue of REITs” released by CSRC. SZSE will push forward high-quality REIT fundraising expansion in a steady and orderly manner, and ensure the first REIT fundraising expansion projects and all work of listing to go smoothly. Also, SZSE will work with all market participants to drive the steady and sustainable development of China’s REIT market, and better support national strategies and economic and social development.