China Securities Regulatory Commission: strictly regulate the use of net recovered funds of REITs for affordable rental housing infrastructure

The general office of China Securities Regulatory Commission and the general office of the national development and Reform Commission issued the notice on standardizing the work related to the pilot issuance of real estate investment trusts (REITs) in the field of infrastructure for affordable rental housing. It is mentioned that the net recovered funds from the issuance of affordable rental housing infrastructure REITs by the sponsors (original equity holders) should be given priority to the construction of affordable rental housing projects. If there is no affordable rental housing project that can be invested, it can also be used for the construction of projects in other key areas of infrastructure. Encourage the use of net recovered funds for new projects with clear investment orientation, mature conditions and effective investment in the short term, and promote the formation of a virtuous circle of investment. When applying for the issuance of infrastructure REITs, the initiator (original equity holder) shall make a commitment to the purpose of the recovered funds and make it public to the public in an appropriate manner.