On June 15, the announcement on listing and trading of SZSE’s first four publicly offered infrastructure securities investment funds (hereinafter referred to as “publicly offered infrastructure REITs”) was issued. Relevant publicly offered REITs products will be officially listed on June 21, which marks the official launch of the pilot program for the publicly offered REITs in China. Since the release of the Notice on the Work Related to Promoting the Pilot Program of Real Estate Investment Trusts (REITs) in the Infrastructure Field on 30 April 2020, SZSE has followed the overall plans of the China Securities Regulatory Commission (CSRC). With the strong support of the National Development and Reform Commission (NDRC) and other ministries and commissions concerned, SZSE has pursued progress while ensuring stability. We've gone all out to advance the pilot program, officially issued supporting rules and regulations, transformed and launched the technology system, promoted project review and sale in a well-regulated way, and carried out market organization and investor education training. Good preparations have been made in all aspects.
The first four publicly offered infrastructure REITs short names are Shougang Green Energy, Shekou Industrial Park, Guangzhou Guanghe and Yantian Port, and the underlying infrastructure projects are located in the key regions for integrated development, namely, the Beijing-Tianjin-Hebei Region and the Guangdong-Hong Hong-Macao Greater Bay Area. The projects cover four mainstream infrastructure fields including garbage disposal and biomass power generation, industrial parks, toll roads and warehousing logistics. The four products were officially initiated on June 7, with the issuing price ranging from CNY 2.30 to CNY 13.38 and raising CNY 14,371 million in total. They have seen active subscriptions and gained market attention and recognition.
The fund codes of SZSE’s publicly offered infrastructure REITs ranges from 180101 to 180999. The code segments are determined based on the types of infrastructure projects, which makes it easy for investors to inquire and distinguish between codes. Since the risk-return characteristics of publicly offered infrastructure REITs are different from those of stocks, bonds, funds and other financial products, a 30% cap on the price change is set for the first trading day, and 10% for other trading days. At least one liquidity service provider is selected for each product to provide bilateral quotation and other services, so as to improve the liquidity mechanism of the secondary market. Fund managers and SZSE members should earnestly implement the mechanism for suitability management of investors, and urge ordinary investors to sign the risk disclosure letter when they purchase publicly offered infrastructure REITs for the first time. By doing so, they can understand the product structure and risk-return characteristics of publicly offered REITs, form the investment philosophies of long-term investment, value investment and rational investment, trade in accordance with laws and regulations, and jointly maintain the sound development of the publicly offered infrastructure REITs market in the long run.
The pilot program for publicly offered infrastructure REITs is another remarkable initiative for the reform and innovation in the capital market. SZSE will resolutely implement the important instructions of General Secretary Xi Jinping on the capital market and decisions and plans of the CPC Central Committee and the State Council. Under the overall leadership of the CSRC, SZSE will act on the principles of staying “open-minded, transparent, honest and impartial” and work with all market players to get off to a good start in the field of infrastructure REITs. SZSE will strive to develop publicly offered REITs into a mainstream financial product in China, better leverage the role of the capital market as a hub, support the development of the Guangdong-Hong Kong-Macao Greater Bay Area and pilot demonstration zones, and serve the overall national economic and social development.
