A real estate investment trust under the umbrella of China’s JD.com has received approval to list on the Shanghai Stock Exchange, as the e-commerce company aims to lighten its investment burden with outside money, reports Nikkei Asia. China’s Securities Regulatory Commission announced the approval on Monday, though the timing of the listing is undecided.
JD.com is China’s second-largest online retailer after Alibaba Group Holding. The REIT approved for listing owns distribution warehouses in the Chinese cities of Chongqing, Wuhan and Langfang. The assets cover 350,000 square meters in total, with a combined value of RMB 1.56 billion ($224 million).
China debuted a market in 2021 for listing REITs, where investors can earn income from a trust’s rental properties. Similar to those in Japan and other countries, Chinese REITs are eligible for tax incentives because they pay more than 90% of their taxable income to shareholders.