China’s State Council gives nod to launch REITs
China’s state council has approved to launch real estate investment trusts (REITs), the Caijing Magazine reported, citing unnamed sources as saying.
The detailed rules will be made by the central bank and the banking regulator prior to the official implementation of the scheme, which is expected to be the end of 2008 or the beginning of 2009, according to one source close to the Ministry of Construction.
The report said the plan has already won the approval from the central bank, China Securities Regulatory Commission (CSRC) and the Ministry of Construction.
The launch of REITs is expected to help real estate developers widen financing channels during the economic downturn, according to an industry insider.
REIT is a security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages.
Tags: central-bank, investment, mortgage