CSRC: Launching a pilot program for commercial real estate investment trusts.

China Securities Regulatory Commission issued the "Announcement of China Securities Regulatory Commission on Launching Pilot Commercial Real Estate Investment Trust Funds". The announcement mainly includes the following contents: First, product definition, commercial real estate REITs refer to closed-end public offering securities investment funds that hold commercial real estate to generate stable cash flow and distribute profits to fund unit holders. Secondly, fund registration and operation management requirements, specifying requirements for fund managers, fund custodians, due diligence, application materials, commercial real estate, and the active operational management responsibilities of the fund manager. Third, leveraging the role of fund managers and professional institutions, tightening and implementing responsibilities, and requiring strict compliance with professional norms and regulatory requirements. Fourth, strengthening regulatory responsibilities, clarifying that various regulatory agencies shall fulfill their responsibilities in the supervision and risk monitoring and disposal of commercial real estate REITs in accordance with laws and regulations. The original text is as follows: China Securities Regulatory Commission issued the "Announcement of China Securities Regulatory Commission on Launching Pilot Commercial Real Estate Investment Trust Funds" In order to implement the decisions and arrangements of the Party Central Committee and the State Council, and the new requirements of the capital market "Nine Articles," promote the high-quality development of the Real Estate Investment Trust Fund (REITs) market, enrich capital market financing tools, support the construction of a new model for real estate development, and continuously enhance the quality and effectiveness of multi-level capital market services to the real economy, China Securities Regulatory Commission formulated the "Announcement of China Securities Regulatory Commission on Launching Pilot Commercial Real Estate Investment Trust Funds" (hereinafter referred to as the "Announcement"), which will be implemented from December 31, 2025. The "Announcement" consists of eight articles, mainly including the following contents: First, product definition, commercial real estate REITs refer to closed-end public offering securities investment funds that hold commercial real estate to generate stable cash flow and distribute profits to fund unit holders. Secondly, fund registration and operation management requirements, specifying requirements for fund managers, fund custodians, due diligence, application materials, commercial real estate, and the active operational management responsibilities of the fund manager. Third, leveraging the role of fund managers and professional institutions, tightening and implementing responsibilities, and requiring strict compliance with professional norms and regulatory requirements. Fourth, strengthening regulatory responsibilities, clarifying that various regulatory agencies shall fulfill their responsibilities in the supervision and risk monitoring and disposal of commercial real estate REITs in accordance with laws and regulations. In addition, other relevant matters related to commercial real estate REITs shall be implemented in accordance with the provisions of the "Guidelines for Publicly Offered Infrastructure Securities Investment Funds (Trial)". Previously, the China Securities Regulatory Commission solicited opinions from the public on the "Announcement". Overall, the basic ideas and main contents of the "Announcement" were generally recognized by all parties. The China Securities Regulatory Commission carefully studied the feedback and fully absorbed reasonable opinions. In the follow-up, the China Securities Regulatory Commission will do a good job in the implementation of the "Announcement". This article is excerpted from the official website of the China Securities Regulatory Commission, edited by Tongcaijing: Liu Jiayin.