The China Securities Regulatory Commission seeks opinions on the pilot launch of commercial real estate investment trusts

The China Securities Regulatory Commission (CSRC) announced that in order to implement the decisions and deployments of the Central Committee of the Communist Party of China and the State Council, and to meet the requirements of the new "Nine National Policies" for the capital market, it aims to promote the high-quality development of the Real Estate Investment Trusts (REITs) market, enrich the investment and financing tools in the capital market, support the establishment of a new model for real estate development, and continuously enhance the quality and effectiveness of multi-level capital market services for the real economy. The CSRC has drafted the "Announcement of the China Securities Regulatory Commission on the Launch of Pilot Commercial Real Estate Investment Trusts (Consultation Draft)" and is now soliciting public opinions.

The "Announcement" consists of eight articles, mainly including product definitions. Commercial real estate REITs refer to closed-end publicly raised securities investment funds that obtain stable cash flow by holding commercial real estate and distribute profits to fund shareholders; requirements for fund registration and operational management, clarifying the requirements for fund managers and custodians, due diligence, application materials, commercial real estate, and the proactive operational management responsibilities of fund managers; leveraging the roles of fund managers and professional institutions, tightening responsibilities, and requiring strict compliance with professional norms and regulatory requirements; strengthening regulatory responsibilities, clarifying the duties of various regulatory agencies to perform the supervision and risk monitoring and disposal of commercial real estate REITs in accordance with laws and regulations.

In addition, other relevant matters concerning commercial real estate REITs shall be implemented in accordance with the relevant provisions of the "Guidelines for Publicly Raised Infrastructure Securities Investment Funds (Trial)."