Two major exchanges released at the same time!
Is the trillion-level "big cake" really here?
Big news in the fund circle
Public offering REITs, this epoch-making new product is approaching!
Following the official "Guidelines for Public Offering of Infrastructure Securities Investment Funds (Trial)" issued by the China Securities Regulatory Commission on August 7, the Shanghai Stock Exchange and Shenzhen Stock Exchange both released public comment drafts on supporting documents related to the public offering of REITs business on the evening of September 4 Regulate the issuance, listing, trading, acquisition, information disclosure, delisting and other behaviors of exchange infrastructure fund shares, and stated that relevant opinions and suggestions will be fed back in the form of e-mail before September 15, 2020.
In fact, since the release of the draft for the REITs business this year, all major fund companies interested in this business have been actively deploying, recruiting, and looking for projects.
In this "trillion-level" market, which one will be the first to become the "crab-eater" of REITs business has become the focus of market attention.
Because of the particularity of the infrastructure REITs business, fund companies must have a first-mover advantage. They must not only compete with the investment management capabilities of investment banks and equity projects, but also compete with the resources and strength of shareholders.
In the future, with the gradual implementation of relevant laws and regulations, public offering REITs will officially set sail, and investors will officially welcome new products.
Both exchanges released
Public REITs supporting rules solicitation draft
It was once predicted by institutions that the market size of China's public offering REITs could reach RMB 6 trillion based on the scale of the US market where REITs originated and the proportion of GDP. This business has brought new horizons to the public offering industry and is currently the focus of the market's most attention.
On the evening of September 4, in order to ensure the smooth implementation of the pilot infrastructure REITs, in accordance with the China Securities Regulatory Commission’s "Guidelines for the Public Offering of Infrastructure Securities Investment Funds (Trial)" and other laws, regulations, departmental rules and regulatory documents, the Shanghai Stock Exchange and Shenzhen The exchanges have all released drafts of supporting documents for the public offering of REITs.
Among them, the Shanghai Stock Exchange issued the "Shanghai Stock Exchange Public Offering of Infrastructure Securities Investment Funds (REITs) Business Measures (for Trial Implementation)" (Securities Opinion Draft), and the "Shanghai Stock Exchange Public Offering of Infrastructure Securities Investment Funds (REITs) Business Guidelines ( Trial)" (draft for comments).
The Shenzhen Stock Exchange has formulated the "Shenzhen Stock Exchange Public Offering of Infrastructure Securities Investment Fund Business Measures (for Trial Implementation)" (Draft for Solicitation of Comments), and the "Shenzhen Stock Exchange Public Offering of Infrastructure Securities Investment Fund Business Review Guidelines (for Trial Implementation)" (for Opinion Draft) and the “Guidelines for the Offering of Publicly Offered Infrastructure Securities Investment Funds by the Shenzhen Stock Exchange (Trial)” (Consultation Draft).
The core points of related supporting documents↓↓↓
Ten Key Points of REITs Fund Business Measures
The two major exchanges issued the "Public Offering of Infrastructure Securities Investment Fund Business Measures (Trial) (Draft for Comment)", which mainly regulates the important nodes and key links of the entire business process, and highlights the infrastructure fund products as a whole Regulatory requirements, centering on the product structure of "public funds + infrastructure asset-backed securities", guide fund managers and asset-backed securities managers to strengthen work coordination on the basis of clear rights and responsibilities, reduce operating costs, compact intermediary responsibilities, and protect Legal rights and interests of investors.
Specifically, the two major exchanges clarified the application conditions, application documents and review procedures in the related "Public Offering of Infrastructure Securities Investment Fund Business Measures (Trial) (Draft for Comment)"; clarified the request for sale, listing and Transaction arrangements; strengthen the coordination of managers; clarify the management requirements for the duration of infrastructure funds; clarify the working procedures for newly purchased infrastructure projects; clarify the requirements for the acquisition of infrastructure funds and changes in share rights; strengthen self-regulation.
Ten key points are worth paying attention to:
1. A package of documents is required to apply for the listing of infrastructure funds
2. The sale is divided into strategic placing, downward inquiry and pricing, offline placing, public subscription, etc.
3. After the fundraising is completed, 80% will be invested in infrastructure assets
4. Requirements for listing and transaction announcements
5. Multiple trading methods
6. Repurchase under pledge agreement
7. Procedures for purchase of duration projects
8. A change report must be issued for changes in more than 5% of equity
9. There are specific requirements for tender offer
10. Take a closer look at investment risk tips
Eight Key Points of REITs Sale Guidelines
In order to clarify the relevant requirements of the infrastructure fund offering business and ensure the stable and orderly development of the infrastructure fund pilot program, the two major exchanges drafted the corresponding "Guidelines for the Offering of Public Infrastructure Securities Investment Funds (Trial) (Draft for Comment)" (below Referred to as "Offering Guidelines").
It mainly regulates the inquiry, pricing, strategic allotment, subscription by offline and public investors, share confirmation and filing, and expansion of infrastructure fund offerings.
1. Clarify the conditions for offline investors to participate in the inquiry
2. The fund manager shall fully disclose the inquiry and sale information
3. The project value calculated at the subscription price is more than 20% higher than the appraised price, and the reason should be disclosed
4. Encourage six professional investors and allotment targets to participate in strategic allotment
V. Relevant prohibitive circumstances stipulating strategic investors
6. Fund shares can be subscribed through OTC fund sales agencies
7. Call back for insufficient subscription
8. The expansion pricing method shall be reviewed and approved by the fund holders' meeting