SSE Regulate the Distribution of Income from Publicly Offered Infrastructure REITs

On November 18, 2022, the Shanghai Stock Exchange (“SSE”) released the Circular on Regulating the Income Distribution in Publicly-offered Infrastructure Real Estate Investment Trusts (REITs).

Infrastructure REITs should distribute income in accordance with Article 37 of the Measures for the Administration of Public-offered Real Estate Investment Trusts and Article 2 of the Guidelines for the Public-offered Real Estate Investment Trusts (for Trial Implementation). The Circular also clarified that, if an infrastructure REIT fails to distribute income in accordance with the laws and regulations for two consecutive years, the manager should apply for termination of the listing of the REIT. In addition, the manager should stipulate the above-mentioned matters in the relevant legal documents of the infrastructure REITs to be listed, and inform investors of the risk that the REITs may be terminated from listing if the income distribution is not carried out as required, and make the relevant information disclosure.