Securities Regulatory Commission: Launch of commercial real estate investment trust fund pilot 

The Zhitong Finance App learned that the China Securities Regulatory Commission issued the “Notice of the China Securities Regulatory Commission on Launching a Pilot Commercial Real Estate Investment Trust Fund”. The announcement mainly includes the following: First, the product definition. Commercial real estate REITs refer to closed publicly raised securities investment funds that obtain stable cash flow by holding commercial real estate and distribute income to fund share holders. Second, fund registration and operation management requirements clarify requirements for fund managers and fund custodians, due diligence, application materials, commercial real estate, etc., as well as fund managers' active operation and management responsibilities. Third, give full play to the role of fund managers and professional institutions, suppress and consolidate responsibilities, and require strict compliance with practice standards and regulatory requirements. Fourth, strengthen supervisory responsibilities and make it clear that all supervisory agencies carry out duties such as commercial real estate REITs supervision and risk monitoring and disposal in accordance with the law and regulations.

The original text is as follows:

The China Securities Regulatory Commission issued the “Notice of the China Securities Regulatory Commission on Launching a Pilot Commercial Real Estate Investment Trust”

In order to implement the decisions and arrangements of the Party Central Committee and the State Council and the new “National Nine Rules” requirements of the capital market, promote high-quality development of the real estate investment trust fund (REITs) market, support the construction of a new model of real estate development, and continuously enhance the quality and efficiency of multi-level capital markets serving the real economy, the China Securities Regulatory Commission formulated the “Notice of the China Securities Regulatory Commission on Launching a Pilot Commercial Real Estate Investment Trust Fund” (hereinafter referred to as the “Notice”), which will be implemented on December 31, 2025.

The “Notice” consists of eight articles, which mainly include the following: First, the definition of a product. Commercial real estate REITs refer to closed publicly raised securities investment funds that obtain stable cash flow by holding commercial real estate and distribute income to fund share holders. The second is fund registration and operation management requirements, which clarify requirements for fund managers and fund custodians, due diligence, application materials, commercial real estate, etc., as well as the fund manager's active operation and management responsibilities. The third is to give full play to the role of fund managers and professional institutions, suppress and consolidate responsibilities, and require strict compliance with practice standards and regulatory requirements. Fourth, strengthen supervisory responsibilities and make it clear that all supervisory agencies carry out duties such as commercial real estate REITs supervision and risk monitoring and disposal in accordance with the law and regulations. In addition, other matters relating to commercial real estate REITs are implemented in accordance with the relevant provisions of the “Guidelines for Publicly Raising Infrastructure Securities Investment Funds (Trial)”.

Earlier, the China Securities Regulatory Commission publicly solicited comments from the public on the “Notice”. All parties generally agree with the basic ideas and main contents of the “Notice”. The China Securities Regulatory Commission carefully studied each feedback and fully absorbed reasonable opinions. Subsequently, the China Securities Regulatory Commission will complete the implementation of the “Notice”.

This article was compiled from the official website of the “China Securities Regulatory Commission”. Financial Editor: Liu Jiayin.