China: CSRC publishes formal rules on PRC infrastructure REITs

China Securities Regulatory Commission (CSRC) has issued the formal rules on publicly listed infrastructure real estate investment trusts (China REITs), which are set out in the guidance on public offerings of infrastructure securities investment funds (trial).

The formal guidance contains several key amendments to the draft guidance, including:

Allowing China REITs to hold multiple asset-backed security plans. Relaxing the restrictions on the underlying assets of China REITs, including, among others, the restrictions on the operating period and income diversification. Changes to the borrowing restrictions applicable to China REITs and allowing loans to be used for acquisition purposes. Modifying the distribution requirements by allowing certain customary adjustments to distributable profit. Clarifications regarding the original owner shareholding lock-up period. Providing more detailed guidance regarding applications