SSE and SZSE Optimize Arrangement for the Issuance of Public Offered Infrastructure REITs

On August 29,2023, both Shanghai Stock Exchange (“SSE”) and Shenzhen Stock Exchange (“SZSE”) released the Circular on Optimizing the Mechanism for the Issuance and Trading of Publicly Offered Real Estate Investment Funds (REITs) (the “Circular”).

The Circular further optimizes and clarifies the issuance and pricing of infrastructure REITs, as well as enquiry and subscription, secondary market trading, asset evaluation and supporting policies. It said that both SSE and SZSE will further promote the investment of the Fund of Funds (FOF) in infrastructure REITs, cooperate with the China Securities Regulatory Commission to continuously promote the participation of institutional investors such as social security funds, pensions, enterprise annuities and public offered funds in the investment, facilitate the inclusion of infrastructure REITs in the underlying assets for trading under the Stock Connect Programs with the HKEX, and explore to launch infrastructure REITs real-time indexes and ETF products.