SSE Lists 1st Batch of Five Publicly-offered Infrastructure REITs

On the morning of June 21, the listing ceremony of the first batch of five Publicly-offered Infrastructure REITs was successfully held in the trading hall of the Shanghai Stock Exchange (SSE). Director-General Chen Fei of the Department of Corporate Bond Supervision of the China Securities Regulatory Commission (CSRC), Deputy Director-General Han Zhifeng of the Department of Fixed Asset Investment of the National Development and Reform Commission (NDRC), and SSE President Cai Jianchun delivered speeches at the ceremony. The representatives for the original equity holders of the five Publicly-offered Infrastructure REITs opened the market for the first batch of products. Among those witnessing the listing of the first batch of products were officials from relevant departments of the CSRC, the NDRC and the State-owned Assets Supervision and Administration Commission of the State Council, as well as representatives from relevant market institutions.

The first day of listing saw the stable trading of the five Publicly-offered Infrastructure REITs, and all five opening prices rose compared with the issuing price, with an average increase of 1.89%. As of the closing, the closing prices increased by 3.72% on average. Among the five, Hua'an Zhangjiang Everbright REIT (508000), the biggest gainer, rose by 5.89%, while Soochow Suzhou Industrial Park REIT (508027) saw the smallest rise of 0.7%. The underlying projects of the first batch of five Publicly-offered Infrastructure REITs involve four major infrastructure types, namely toll roads, industrial parks, warehousing and logistics, and sewage treatment, and cover key regions including the Beijing-Tianjin-Hebei Area, the Yangtze River Economic Belt, the Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Delta. These products give priority to supporting weak areas in infrastructure and high-tech and featured industrial parks, focusing on high-quality assets, innovation and standardization, with good demonstration effect.

Since the pilot launch of the Publicly-offered Infrastructure REITs by the CSRC and the NDRC, the SSE has made full preparations in terms of product research, rule-making and market organization, trading mechanism arrangement and innovation, technology system development and testing, project pipeline, and investor education and development. Starting April 2021, the SSE, under the unified deployment of the CSRC, began to receive the application materials of the projects of the Publicly-offered Infrastructure REITs. Referring to the relevant procedures and requirements of publicly-offered securities, the SSE made every effort to ensure the smooth launching of the first batch of projects, by combining years of rich experience accumulated in the audit of ABS projects. All this effectively contributed to controlling the entrance and doing a good job in project review, as well as pushing the market to continue to do a good job in the inquiry, sales, listing and trading of the first batch of Publicly-offered Infrastructure REITs.

The successful launch of the first batch of the products of the Publicly-offered Infrastructure REITs is an important milestone and a new start. The SSE will gradually expand the scope of the pilot by drawing on the best international practices on the basis of domestic conditions, continue to improve the mechanism, and form a demonstration effect as soon as possible. Meanwhile, we will promote the high-quality development of the capital market in line with the relevant requirements of the new development stage, philosophy and paradigm, so as to contribute to integrating the Publicly-offered Infrastructure REITs into the overall capital market reform.