With the continuous development of my country’s financial market, financial investment tools are also constantly innovating. The relevant departments issued a work notice on the pilot project of infrastructure REITs on April 30, 2020. Then infrastructure REITs What does it mean?

What does infrastructure REITS mean?

To put it simply, infrastructure REITs means to invest in infrastructure securitization, that is, the infrastructure is divided into certain shares according to its value. A certain number of securities are then sold to the market, and investors who purchase these securities can share the benefits brought by the infrastructure.

REITs originally meant real estate trust funds, which means a financial transaction process that directly converts low-liquidity, non-security real estate investments into securities assets in the capital market. Currently, there are Many real estate companies have launched real estate securitization business, and the process of infrastructure securitization is also advancing. On April 30, the China Securities Regulatory Commission and the National Development and Reform Commission jointly issued the "About Promoting Real Estate Investment Trust in the Infrastructure Sector" "Notice on Related Work on the Fund (REITs) Pilot" (hereinafter referred to as the "Notice"), announcing the official launch of the pilot program for publically raised REITs in the infrastructure field.