China rolls out more measures for REIT development

China has unveiled new measures to foster the issuance of Real Estate Investment Trust (REIT) products, amid efforts to expand effective investment and lower leverage ratios for companies, according to the country's top securities regulator.

China will develop REITs for consumption infrastructure that can create improved conditions and scenarios for consumers, per a circular released by the China Securities Regulatory Commission.

Infrastructure REIT priority will be given to commercial outlet projects such as department stores, shopping centers and farmers markets, as well as community business projects that concern people's lives.

The circular also called for efforts to optimize review and registry procedures, and establish a mechanism for whole-process oversight.

Project compliance, the transfer of state-owned assets, tax policies and other REIT-related issues will be addressed through coordinated efforts from key regions, the circular said, noting that laws and regulations will be made specifically for REITs.