BusinessTimes
BEIJING: China plans to launch real estate investment trusts (REITs) on the Shanghai Stock Exchange as part of a move to provide more financial products to investors, a senior official said yesterday.
Zhu Congjiu, general manager of the Shanghai Stock Exchange, did not specify when the REITs would come to market.
But he told a financial forum that his office was planning to launch some REIT products to let more investors reap gains from China's soaring property prices.
REITs are a cross between bonds and equities, with regular dividends and capital appreciation gains. They invest in real estate directly, either through properties or mortgages, and can be sold like stocks on major exchanges.
"There is huge potential for REITs in a big and rapidly developing country like China," Zhu said.
He also said his office would consider opening an international board for foreign firms to sell shares in China.
"Some institutions have suggested we open such a board and there is also great demand for it. We will actively study it and launch it when the conditions are ripe," he said. - Reuters
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