Securities Regulatory Commission: Continue to increase the supply of high-quality REITs and improve the REITs expansion system arrangement and market-based pricing mechanism

The Zhitong Finance App learned that on December 31, the China Securities Regulatory Commission issued a notice on work related to promoting high-quality development of the real estate investment trust fund (REITs) market. Among them, it is proposed to promote market expansion and expansion. Continue to increase the supply of high-quality REITs to promote the continuous enrichment of the market format and orderly growth in scale. Improve REITs expansion system arrangements and market-based pricing mechanisms, and actively explore diverse and efficient implementation paths for expansion. Support listed REITs with steady operation, effective governance, and high quality of information disclosure to improve and strengthen through asset purchases, expansion, and mergers, orderly increase the asset size and risk resilience of individual REITs, and continuously enhance their endogenous motivation for long-term value creation. Treat enterprises with all forms of ownership equally, support private enterprises to revitalize their existing assets through REITs, and broaden equity financing channels.

The original text is as follows:

Notice on work related to promoting high-quality development of the real estate investment trust fund (REITs) market

(Securities Regulatory Affairs [2025] No. 63)

Various agencies of the China Securities Regulatory Commission, Shanghai Stock Exchange, Shenzhen Stock Exchange, Beijing Stock Exchange, China Securities Registration and Settlement Co., Ltd., China Securities Association, China Securities Investment Fund Industry Association:

In order to implement the spirit of the Third and Fourth Plenums of the 20th CPC Central Committee and the Central Economic Work Conference, in accordance with the “Certain Opinions of the State Council on Strengthening Supervision and Risk Prevention and Promoting High-Quality Development of the Capital Market” (Guofa (2024) No. 10), promote high-quality development of the real estate investment trust fund (REITs) market, improve basic systems, optimize regulatory arrangements, improve market functions, and enhance the quality and efficiency of multi-level capital markets serving the real economy. The relevant matters are hereby notified as follows.

I. Promoting the steady and healthy development of commercial real estate REITs

(1) Deeply understand the importance of developing commercial real estate REITs. Promoting the development of the commercial real estate REITs market is an important measure for the capital market to implement the decisions and arrangements of the Party Central Committee and the State Council on “revitalizing stocks, improving growth” and “increasing the proportion of direct financing”. It is an effective means of supporting the construction of a new model of real estate development through market-based mechanisms. It is of great significance in promoting the healthy development of the REITs market, promoting the functioning of REITs, and continuously improving the inclusiveness and adaptability of the capital market system. All units should attach great importance to and carefully organize, urge all players, participants, and links in the REITs market to strictly implement relevant regulatory requirements and risk prevention and control requirements, and do a good job in commercial real estate REITs to ensure effective results.

(2) Stimulate the vitality of market players. Combining the characteristics of commercial real estate, clarify market-based entry arrangements for commercial real estate REITs, and focus on stabilizing expectations and improving efficiency to better stimulate the vitality of market players and give full play to market advantages. The focus is on supporting the issuance of commercial real estate REITs in line with policy orientation and commercial attributes, and improving the efficiency of issuance and listing. REITs are encouraged to hold asset portfolios with similar business formats, complementary functions or operational collaboration, promote cross-sector asset integration, and enhance scale effects and risk diversification capabilities. Support financial institutions such as banking and insurance asset management companies with business standards, sound governance, and experience in asset management to participate in commercial real estate REITs business. Expand the scope of original shareholders in an orderly manner.

(3) Strengthen efforts to promote work. Each securities regulatory bureau should give full play to the advantages of territorial supervision, strengthen policy publicity and interpretation, promote the cultivation of high-quality assets, and promptly coordinate and promote solutions to the blockages and difficulties in the development of commercial real estate REITs in their jurisdictions. Stock exchanges should continue to improve the quality of market promotion, improve the quality and efficiency of listing reviews, optimize market services, and enhance market acquisition. Further consolidate the due diligence and inspection responsibilities of fund managers, financial advisors and other agencies, ensure that commercial real estate REITs information disclosure is true, accurate, and complete, and strictly control asset compliance, risk, and quality.

II. Accelerate the construction of the REITs market system

(4) Promote market expansion and expansion. Continue to increase the supply of high-quality REITs to promote the continuous enrichment of the market format and orderly growth in scale. Improve REITs expansion system arrangements and market-based pricing mechanisms, and actively explore diverse and efficient implementation paths for expansion. Support listed REITs with steady operation, effective governance, and high quality of information disclosure to improve and strengthen through asset purchases, expansion, and mergers, orderly increase the asset size and risk resilience of individual REITs, and continuously enhance their endogenous motivation for long-term value creation. Treat enterprises with all forms of ownership equally, support private enterprises to revitalize their existing assets through REITs, and broaden equity financing channels.

(5) Strengthen the construction of secondary markets. A rich index system covering REITs supports fund managers to develop fund products linked to related indices, supports eligible public funds to include REITs in the scope of investment, studies and explores innovative products such as transactional open index funds (REITs ETFs) that track REITs indices, and further enriches investors' asset allocation choices. Strengthen efforts to guide various medium- to long-term funds such as insurance funds, social security funds, and pension funds into the market, and play their role as stabilizers and ballast stones. Promote the inclusion of REITs in the scope of the Shanghai-Shenzhen-Hong Kong Stock Exchange and expand a high level of market openness to the outside world. Promote professional investment institutions to strengthen REITs investment and research capacity building, and encourage investors to pay attention to asset fundamentals and long-term investment value.

(6) Continuously improve the market ecology. Improve the REITs issuance and transaction mechanism, optimize the market-oriented REITs valuation and issuance pricing mechanism, and standardize sales behavior such as promotion, inquiry, pricing, and placement. Combining real estate operation characteristics with risk and return characteristics, REITs information disclosure and market restrictions are strengthened. Continue to strengthen communication and coordination with relevant departments, actively promote the implementation of REITs supporting policies, and enhance policy synergy. Accelerate the formulation of special REITs legislation and departmental regulations, focus on improving the inclusiveness and adaptability of the system, and consolidate the legal foundation for the high-quality development of the REITs market. Improve the multi-level REITs market system.

III. Improve the mechanism of the REITs declaration and registration system

(7) Optimize the review and registration process. Improve the REITs review and registration process, which is standardized, transparent and has clear powers and responsibilities, unify audit concepts and standards, improve working mechanisms, optimize links, make better use of the collective decision-making and control mechanism, and effectively improve the efficiency of review and registration. Strengthen the supervision and control of the operation of public power, establish a sound quality control system and integrity supervision mechanism with effective checks and balances, and provide a solid guarantee for the standardized operation of the REITs review and registration process. Strengthen the Securities Regulatory Commission's business guidance, supervision and inspection of the stock exchange REITs listing review process, and promote the improvement of audit quality, efficiency, and integrity risk prevention and control. The REITs review and registration process adheres to the principle of “being open and fully open” and is subject to social supervision.

(8) Improve the market-based standard system. Adhere to the essential nature of REITs as a securities listing platform, continuously improve the key concerns and information disclosure requirements for REITs audits of assets in different business formats, and disclose relevant standards in an appropriate form in accordance with the principle of “mature category one, one category introduced”. Summarize common issues in REITs review and registration practices in a timely manner, research and form solutions and communicate them to the market to promote the formation of stable expectations. Research the establishment of more flexible yield requirements linked to market benchmarks such as risk-free interest rates. Supervise the use of funds recovered by REITs, strictly comply with national industrial policies, foreign exchange management, and relevant laws and regulations, and focus on supporting the revitalization of stocks and encouraging investment expansion.

IV. Strengthening supervision and risk prevention

(9) Improve the whole chain supervision mechanism. Follow the rules and risk characteristics of REITs, improve the full-chain supervision system covering due diligence, issuance and pricing, listing transactions, asset operation management, and information disclosure, and strengthen penetrating supervision of the quality, operation management, and governance levels of real estate assets. The Securities Regulatory Bureau should adhere to problem and risk orientation, do a good job of daily supervision and risk monitoring and handling of REITs, and promptly detect and handle illegal violations and risk incidents. Stock exchanges should strictly control the issuance and listing of REITs through review and inquiry, on-site supervision, on-site inspection, etc., and do a good job of self-regulatory supervision such as listing transactions, information disclosure, and risk monitoring, so as to effectively maintain the smooth operation of the market. Securities industry associations and fund industry associations should strengthen the self-regulatory management of REITs participants such as fund managers, financial advisors, and offline investors. Strengthen the application of science and technology supervision.

(10) Promote responsible market players. Continuously consolidate fund managers' active REITs management responsibilities, strengthen operation management agencies' operational responsibilities for real estate through agreement arrangements, supervision and inspection, etc., make better use of the industry's professional advantages, improve operation management efficiency, and continuously enhance the quality of REITs operation and dividend capabilities. Fund managers, fund custodians, financial advisors, asset-backed securities managers, original equity holders and other professional institutions are urged to effectively perform their duties in strict accordance with laws and regulations, contractual agreements and public commitments. Crack down on illegal acts and protect the legitimate rights and interests of investors in accordance with the law.

(11) Maintain the smooth operation of the market. Focus on improving the REITs information disclosure system, improving the transparency, standardization and timeliness of information disclosure, and strengthening temporary disclosure requirements for major events. Further improve the REITs transaction monitoring and monitoring mechanism, strengthen risk monitoring and early warning, maintain the smooth operation of the secondary market, effectively prevent and mitigate major risks, and continuously enhance market resilience and resilience to risks. Strengthen expectation guidance and investor education, carry out policy interpretation and public opinion publicity in various ways, and continue to create a good market environment.

All units are invited to carry out their duties and cooperate to effectively enhance joint supervisory efforts and actively promote the implementation of all REITs tasks.

China Securities Regulatory Commission

December 31, 2025

This article was selected from the “China Securities Regulatory Commission” website. Zhitong Finance Editor: Feng Qiuyi.