U.S. markets close in 4 hours 14 minutes
  • S&P 500

    -42.37 (-1.01%)
  • Dow 30

    -463.47 (-1.33%)
  • Nasdaq

    -67.11 (-0.50%)
  • Russell 2000

    -15.03 (-0.68%)
  • Crude Oil

    +0.16 (+0.25%)
  • Gold

    -5.10 (-0.28%)
  • Silver

    +0.07 (+0.25%)

    +0.0043 (+0.35%)
  • 10-Yr Bond

    +0.0220 (+1.37%)

    +0.0026 (+0.19%)

    -0.3140 (-0.29%)

    -1,381.76 (-2.41%)
  • CMC Crypto 200

    +1,252.48 (+516.10%)
  • FTSE 100

    -184.61 (-2.59%)
  • Nikkei 225

    -909.71 (-3.08%)

Shanghai exchange prepares to list real estate investment trusts in new investment offering for public investors

·2 min read

The Shanghai Stock Exchange will allow real estate Investment trusts (Reits) to commence trading this year, part of the plan to expand the range of financial products to public investors in Asia's largest capital market.

"We are preparing to make important efforts in Reits going forward, we are aiming for the first trial this year," general manager Cai Jianchun said during a panel discussion at the Boao Forum in Hainan on Monday, without elaborating. The deputy chiefs of the Chinese regulators overseeing the stock market and foreign exchange were in attendance.

The exchange announced on Wednesday that it would start accepting applications for companies to issue Reits on its electronic system, with two submissions recorded on April 22, the bourse said on its website.

Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.

One was backed by investments in an expressway connecting Shanghai with the coastal city of Ningbo in eastern Zhejiang province. The other is backed by a highway in Western Chongqing municipality, it added.

The move will increase the range of the asset-backed securities valued at more than 3 trillion yuan (U$S462.3 billion). The bourse started the trading Reits restricted to private investors late last year.

Serving technology innovation had been at the top of the Shanghai exchange's agenda, Cai said at the forum. Since its inception in 2019, 262 companies had raised a combined 340 billion yuan on Shanghai's Science and Technology Innovation Board, also known as The Star Market, through March this year.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2021 South China Morning Post Publishers Ltd. All rights reserved.

Copyright (c) 2021. South China Morning Post Publishers Ltd. All rights reserved.