In order to improve the level of Shanghai as an international financial center, Shanghai is accelerating the promotion of real estate investment trust funds (REITs) pilot projects. A reporter from the Shanghai Securities News learned from the press briefing of the Shanghai Development and Reform Commission held on June 16 that the Shanghai Development and Reform Commission took the lead in working with relevant units to promote Shanghai’s infrastructure REITs. On June 15, the Shanghai Municipal Government’s executive meeting reviewed and approved the “20 Shanghai REITs”.
Wang Huajie, deputy director of the Shanghai Municipal Development and Reform Commission, said at the briefing that infrastructure REITs, as a major national financial innovation, are a broad category of financial products that are different from stocks and bonds. They will play a significant role in accelerating the improvement of Shanghai’s international financial center. Important supporting role.
Proposed a series of special support policies for innovation
The “20 Shanghai REITs” are fully called “Implementation Opinions on Shanghai’s Accelerating the Establishment of Internationally Competitive Real Estate Investment Trust Funds (REITs) Development New Heights”, including 20 policy measures in six aspects. The whole process of selection, application, issuance, transaction, operation and management, and the whole chain are the main areas, and the progress is progressing, and the full life cycle policy support for the development of infrastructure REITs is more prominent.
Among them, centering on “relying on the advantages of the financial center to accelerate the creation of the first choice for REITs product issuance and trading”, the “Shanghai REITs 20 Articles” proposed the establishment of special funds, support for the Shanghai Stock Exchange to conduct business, support for public fund managers to develop business, expand product investors, and develop Six policy measures including professional services and strengthening supporting policy support.
Focusing on strengthening the joint development of infrastructure REITs in the Yangtze River Delta, the “20 Shanghai REITs” proposed four policy measures, including the establishment of industrial investment funds, encouragement of cross-regional project cooperation, establishment of industrial alliances, and holding of the Yangtze River Delta REITs forum.
On the whole, the “Shanghai 20 REITs” proposed a series of special support policies for innovation, that is, a “tailor-made” policy to support the development of Shanghai’s infrastructure REITs. For example, it is proposed to establish a special fund for the development of Shanghai REITs to support the development of infrastructure REITs business such as related original stakeholders, professional service institutions, infrastructure REITs, and the Shanghai Stock Exchange to successfully issue infrastructure REITs. The city’s original equity holders of the product, the infrastructure REITs asset entrusted operation and management enterprises registered in the city, etc., will be rewarded in accordance with the relevant management measures through the special funds for the development of Shanghai REITs.
Mining the stock resources of infrastructure
On June 21, the first batch of pilot projects for real estate investment trust funds will be listed and traded on the Shanghai Stock Exchange and the Shenzhen Stock Exchange respectively. In the first batch of 9 infrastructure public offering REITs projects approved by the China Securities Regulatory Commission, Shanghai Stock Exchange has all 5 of them.
Next, strengthening project management and reserve, and mining infrastructure stock resources is also a key content of the “Shanghai 20 REITs”. To this end, Shanghai will establish a project reserve database to encourage state-owned enterprises to participate.
Wang Huajie revealed that at present, Shanghai has already had the first batch of five relatively mature projects into the national reserve, and there are more than 20 projects that have the conditions for subsequent cultivation, which add up to about 20 billion to 30 billion yuan. Shanghai’s infrastructure REITs project reserve pool is divided into two levels. One is that more mature projects can be recommended to be included in the national reserve, and the other is long-term reserve projects that need to be further cultivated.
He said that there are still a large number of infrastructure projects in Shanghai that need to be sorted out. “For example, some of the operating years have not yet arrived, and a process is still needed.”
Support long-term capital investment in REITs products
It is reported that with the approval of the Shanghai Municipal Government, the “20 Shanghai REITs” will soon be jointly organized by the Shanghai Development and Reform Commission, Shanghai Local Financial Supervision Bureau, Shanghai Securities Regulatory Bureau, Shanghai Municipal Finance Bureau, Shanghai State-owned Assets Supervision and Administration Commission, and Shanghai Taxation Bureau. Jointly issued by the unit. In the next step, Shanghai will further refine relevant policies and measures to ensure the implementation of the “Shanghai 20 REITs” one by one, and provide strong support for Shanghai to accelerate the creation of a new highland for the development of internationally competitive REITs.
“Attracting relevant high-quality institutions and talents is one of the prerequisites for the development of REITs business.” Li Jun, deputy director of the Shanghai Municipal Financial Supervision Bureau, said that Shanghai will further attract fund management companies and securities companies to set up headquarters and branches in Shanghai. Continuous support will be given to newly established or newly moved licensed institutions for their establishment and operation. Support various domestic and foreign financial institutions registered in Shanghai to apply for public fund manager qualifications and develop infrastructure REITs. Support the high-quality infrastructure REITs project to apply for the Shanghai Financial Innovation Award. Support the outstanding talents of infrastructure REITs to apply for Shanghai Overseas Golden Talents, Leading Golden Talents, and Young Golden Talents.
Li Jun also stated that the Shanghai Local Financial Supervision Bureau will support long-term funds such as social security funds, pension insurance, and enterprise annuities, as well as institutional investors such as Shanghai banks and insurance companies, to participate in the strategic distribution and investment of Shanghai infrastructure REITs products, and encourage qualified individuals. Commercial banks and asset management institutions sell REITs products on a commission basis. Cooperate with the Shanghai Stock Exchange to prepare for the establishment of the Yangtze River Delta Infrastructure REITs Industry Alliance, develop and trade infrastructure REITs and their derivatives, and support the issuance and listing of infrastructure REITs products established by Shanghai’s original equity holders on the Shanghai Stock Exchange.
【Error correction】
【Editor in charge: Liu Xuyao】
.