Chinese officials advocate for expanding REITs to stabilize the property sector
A residential construction site in Beijing, China, as of October 16, 2025. Source: Reuters/Tingshu Wang (https://www.reutersconnect.com/item/residential-buildings-under-construction-in-beijing/dGFnOnJldXRlcnMuY29tLDIwMjU6bmV3c21sX1JDMlVDSEFHUkdJRg%3D%3D/?utmmedium=rcom-article-media&utmcampaign=rcom-rcp-lead)
SHANGHAI, Dec 9 (Reuters) - Chinese securities regulators are urging a rapid expansion of the public real estate investment trust (REIT) market to address liquidity challenges faced by developers and meet investor yield expectations. Han Zhuo, head of bond supervision at the China Securities Regulatory Commission (CSRC), and Jiang Jie, head of the legal team, emphasized the need for China to allow commercial properties to be listed as REITs as soon as possible, supporting a new growth model for developers.
In an article published in the official Shanghai Securities News, they suggested that authorities should "accelerate the supply of high-quality projects and reduce the time and opportunity costs of issuing REITs." This call comes on the heels of the CSRC's publication of draft rules for a pilot scheme of commercial REITs, which would enable the listing of assets like hotels, office buildings, and stadiums. Currently, eligible REIT assets in China are primarily infrastructure projects such as industrial parks, highways, logistics parks, and data centers.
The expansion of China's REIT sector is prompted by renewed signs of strain in the property market, with developer giant Vanke (000002.SZ) seeking to delay payments on two bonds due to a sluggish market. The officials suggest that initiating the commercial REITs scheme promptly could "alleviate developers' debt burdens and stabilize property market expectations." China's REIT market is currently valued at approximately 220 billion yuan ($31.12 billion) in market capitalization, but it has the potential to reach 7.5 trillion yuan according to some estimates.
REITs transform dormant assets into standardized, liquid securities, providing a pricing anchor while freeing up capital for reinvestment, as the article explains. The officials also highlight the rapidly growing demand for REITs in China, attributed to the declining risk-free interest rates.
Reporting by the Shanghai Newsroom; Editing by Sam Holmes
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