The China Securities Regulatory Commission has released a draft proposal for the pilot of commercial real estate investment trusts for public comment, strengthening regulatory responsibilities.

On November 28, the China Securities Regulatory Commission (CSRC) conducted research and drafted the "CSRC Announcement on the Pilot Launch of Commercial Real Estate Investment Trusts (REITs) (Consultation Draft)", and is now seeking public opinions. The "Announcement" consists of eight articles, mainly including the following contents: firstly, the definition of the product, 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, requirements for fund registration and operational management are specified, including requirements for fund managers, fund custodians, due diligence, application materials, commercial real estate, and the active operational management responsibility of fund managers. Thirdly, it emphasizes the role of fund managers and professional institutions, strengthens responsibilities, and requires strict compliance with professional norms and regulatory requirements. Fourthly, regulatory responsibilities are strengthened, specifying that regulatory agencies must fulfill their duties in regulating commercial real estate REITs and monitoring and disposing of risks in accordance with the law and regulations. In addition, other related matters concerning commercial real estate REITs will be implemented in accordance with the relevant provisions of the "Guidelines for Public Offering of Infrastructure Securities Investment Funds (Trial)". The full text is as follows: Public Consultation on the "CSRC Announcement on the Pilot Launch of Commercial Real Estate Investment Trusts (REITs) (Consultation Draft)" In order to implement the decisions and arrangements of the Party Central Committee and the State Council, and to promote the high-quality development of the real estate investment trust (REITs) market, enrich capital market financing tools, support the construction of a new mode of real estate development, and continuously enhance the effectiveness of serving the real economy with a multi-level capital market, the China Securities Regulatory Commission (CSRC) has researched and drafted the "CSRC Announcement on the Pilot Launch of Commercial Real Estate Investment Trusts (REITs) (Consultation Draft)" (referred to as the "Announcement") and is now seeking public opinions. The "Announcement" consists of eight articles, mainly including the following content: firstly, the 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, requirements for fund registration and operational management are specified, including requirements for fund managers, fund custodians, due diligence, application materials, commercial real estate, and the active operational management responsibility of fund managers. Thirdly, it emphasizes the role of fund managers and professional institutions, strengthens responsibilities, and requires strict compliance with professional norms and regulatory requirements. Fourthly, regulatory responsibilities are strengthened, specifying that regulatory agencies must fulfill their duties in regulating commercial real estate REITs and monitoring and disposing of risks in accordance with the law and regulations. In addition, other related matters concerning commercial real estate REITs will be implemented in accordance with the relevant provisions of the "Guidelines for Public Offering of Infrastructure Securities Investment Funds (Trial)". We welcome valuable opinions from all sectors of society on the "Announcement". The CSRC will further improve the "Announcement" based on the feedback from public consultation and proceed with the implementation procedures. This article is selected from the "CSRC Official Website"; Edited by GMTEight: Huang Xiaodong.