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The Securities and Futures Commission (SFC) today released the Consultation Conclusions (Consultation Conclusions) on Amendments to the Code on Real Estate Investment Trusts (REIT Code) (Note 1).
The SFC published in January proposals to give real estate investment trusts (REITs) the flexibility to invest in (i) property development activities and (ii) financial instruments.
The proposals were generally supported by the market and will be adopted with some modifications and amendments taking into account the comments received. Details of the submissions and the SFC's responses to the comments are contained in the Consultation Conclusions.
"We thank the respondents for their feedback. The amendments that we are making to the REIT Code will help to promote the growth of Hong Kong's REIT market in a manner that protects investors' interests and market confidence," said Mrs Alexa Lam, the SFC's Deputy Chief Executive Officer.
The revised REIT Code will become effective after it is gazetted. The SFC will also provide further practical guidance to the industry by way of a set of Frequently Asked Questions.
Note:
- On 27 January 2014, the SFC issued a Consultation Paper on Amendments to the Code on Real Estate Investment Trusts. The consultation period ended on 26 February 2014.
