FOREIGN investment via real estate investment trusts in China has hit a stumbling block – and a pretty big one at that – the Chinese government.
The Shanghai Stock Exchange has revealed that no REITs will be launched in
Head of derivatives market development at the Shanghai Stock Exchange, Wayne Chen Zhizuo said he doubted any REITs would enter the local stock exchange in the near future.
“Many things need to be done before we can see a successful REIT enter the stock exchange…it is important first to introduce a level playing field (for both domestic and foreign investors in a REIT),” Chen said last week.
Chen did not specify how foreign investors might be able to invest in REITs when they were eventually traded on domestic bourses, but noted that currency transfers should not be an issue for them.
Last year,
it was thought a Chinese based company Tianjin Lingrui REIT Co Ltd had been set up to prepare for the launch of what could be China’s first real estate investment trust.
Australian Property Journal