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On May 31, SZSE officially released the Guidelines on Publicly Raised Infrastructure Securities Investment Fund Business No. 3 – Newly Acquired Infrastructure Projects (Trial) (hereinafter referred to as the “Guidelines on Newly Acquired Infrastructure Projects” or the “Guidelines”). It is an important measure of SZSE to implement the decisions and plans of the CPC Central Committee and the State Council and the arrangements and requirements of CSRC, deepen the financial supply-side structural reform, expand equity financing channels, innovate in infrastructure investment and financing mechanism, promote the healthy development of the infrastructure REITs market, and improve the capability of the capital market in serving the real economy.
SZSE has always embraced ideas with an open mind when formulating rules. We solicited public opinions on the Guidelines on Newly Acquired Infrastructure Projects from 15 to 30 April 2022. We held seven seminars, which were attended by nearly 90 market participants including enterprises, market institutions and investors. We also conducted market surveys to learn about market participants’ opinions and requirements. The feedback was positive on the whole. The market participants fully affirmed the issuance of the Guidelines and put forward specific, constructive and operable opinions and advice on the implementation of the Guidelines. After carefully studying the feedback, SZSE absorbed and adopted reasonable advice and refined the Guidelines comprehensively.
The main content of the Guidelines is as follows. First, improving the system of rules on infrastructure REITs. Expanding raising is an important feature of infrastructure REITs. Formulating the Guidelines on Newly Acquired Infrastructure Projects and standardizing and guiding acquisition of new infrastructure projects in the duration of infrastructure REITs and relevant business rules for raising expansion, information disclosure, etc. are of great significance to further promoting the sustained development of infrastructure REITs, revitalizing existing assets and facilitating the sound circulation of investment and financing. Second, standardizing the process for acquisition of new infrastructure REITs. Comprising 58 articles under seven chapters, the Guidelines on Newly Acquired Infrastructure Projects has fully referred to relevant institutional arrangements on major asset restructuring and securities issuance of listed companies. Based on the characteristics of infrastructure REITs, it has stipulated comprehensive provisions on newly acquired projects of listed infrastructure REITs and relevant matters such as raising expansion, suspension and resumption of trading, information disclosure, etc. Adopting stricter access requirements and defining business conditions. The Guidelines has refined the general requirements for newly acquired infrastructure projects and clearly defined intermediaries’ responsibilities, so as to protect investors’ rights and interests and maintain the well-functioning infrastructure REITs market ecosystem. Detailing procedures arrangements and standardizing the operating procedures. It has clearly laid out the declaration procedures, detailed the process for acquisition of new infrastructure projects, and standardized due diligence investigation and connected transactions, as well as transaction implementing procedures, issuance, listing and review procedures for raising expansion, etc. Strengthening information disclosure and suspending and resuming trading prudently. With information disclosure at the core, it has enhanced regulation during and after events. It requires all parties involved to strictly fulfill the obligation of keep confidential information that is not disclosed yet. It adheres to the principles of prudent suspension of trading and phased disclosure and has specified the requirement for suspension time. Fully responding to market appeals and providing a variety of raising expansion methods. It has strengthened the concept of being market-oriented, improved the positive incentive system, and refined the arrangements for raising expansion, to better facilitate the sound circulation of investment and financing.
Next, SZSE will, under the leadership of CSRC, continue to promote the implementation of newly acquired projects of infrastructure REITs in a steady and orderly manner. We will connect all links of the whole business chain, energize market development drivers, and promote the high-quality development of the infrastructure REITs market, thus better serving national strategies as well as economic and social development.
