China edges closer to REITs

The emergence of China’s real estate investment trusts (REITs) is one step closer to fruition and awaits final approval from the State Council, reported state media.
According to an anonymous source, the first batch of REITs could be launched in the second half of this year, but initially only institutional buyers would be allowed to purchase them. Progress on the establishment of Chinese REITs has accelerated since August 2009, and Shanghai seems favored to be the first city to produce an unlisted REIT. REITs invest in commercial property and produce dividends for shareholders from the rents they receive.