SSE Revises and Releases Guidelines for Key Points of Infrastructure REITs Review
To implement the requirements of the General Office of the State Council's Opinions on Further Revitalizing Existing Assets and Expanding Effective Investments and the China Securities Regulatory Commission (CSRC)'s Notice on Further Promoting Regular Issuance of Real Estate Investment Trusts (REITs) in the Infrastructure Sector, the Shanghai Stock Exchange (SSE), under the guidance of the CSRC, revised and released the Guidelines of Shanghai Stock Exchange for the Application of Rules for the Publicly Offered Infrastructure Real Estate Investment Trusts (REITs) No. 1 - Key Points of Review (for Trial Implementation) (2023 Revision) (hereinafter referred to as Guidelines for Key Points of REITs Review) on May 12, 2023.
This revision of the Guidelines for Key Points of REITs Review highlights the core of "regulating assets", further clarifies the key points of REITs review, and enhances the information disclosure requirements. In accordance with the principle of "launching upon readiness", it clarifies the review standards for two major categories of assets, namely industrial parks and toll roads, improves the transparency of application and review for mature asset categories, and accelerates the pace of issuance and listing, aiming to further optimize and leverage the functions of the infrastructure REITs market, and promote the high-quality development of the REITs market.
Based on the principles of institutionalization, standardization, and transparency, this revision attempts to establish a system for review and information disclosure that are in line with the characteristics and features of REITs. First, in combination with the pilot experience, it clarifies the requirements for product design, project review, and information disclosure, leading to the formation of market consensus and further promoting standardized market operations. Second, in light of the characteristics of industrial parks and toll roads and on the basis of existing requirements for review and information disclosure of REITs, it details the review focus for the two major asset categories from multiple dimensions, including project compliance, historical operation, and evaluation parameter settings, strengthening requirements for information disclosure and enhancing the accuracy and efficiency of supervision.
Since the launch of the pilot program for infrastructure REITs in April 2020, under the overall guidance of the CSRC, the SSE has attached great importance to and spared no effort in accelerating the development of the REITs market, actively supporting various market entities to make good use of REITs tools. As of now, the SSE has received registration approval for 20 infrastructure REITs. After the successful issuance of the two latest-approved REIT products, the market financing scale is expected to exceed RMB 71 billion yuan, and the funds will drive new project investment amounting to over RMB 330 billion yuan. The approved projects cover a variety of mainstream infrastructure types, including warehousing and logistics, industrial parks, toll roads, sewage treatment, clean energy, and government-subsidized rental housing. They have played a crucial role in revitalizing existing assets and expanding effective investment.
Going forward, the SSE will earnestly implement the requirements of the 20th CPC National Congress to "improve the functioning of the capital market and increase the proportion of direct financing". In accordance with the CSRC's "twelve measures for further promoting the regular issuance of REITs", the SSE will further organize and foster the REITs market, establish mechanisms and systems, expand the scope of eligible basic assets, facilitate regular project issuance and follow-up capital raising, so as to constantly promote the development of the REITs market and better serve the high-quality development and steady growth of the real economy.
Notice on Issuance of Guidelines of Shanghai Stock Exchange for the Application of Rules for the Publicly Offered Infrastructure Real Estate Investment Trusts (REITs) No. 1 - Key Points of Review (for Trial Implementation) (2023 Revision)