Zhongxin Finance, May 27th, according to the website of the China Securities Regulatory Commission on the 27th, in order to promote the standardized and orderly development of the affordable rental housing REITs business, the General Office of the China Securities Regulatory Commission and the General Office of the National Development and Reform Commission recently jointly issued the "Regulations and Safeguards". The Notice on the Work of Real Estate Investment Trusts (REITs) in the Infrastructure Sector for Pilot Issues of Rental Housing, clarifies that infrastructure REITs for the issuance of affordable rental housing should adhere to the positioning that houses are for living in, not for speculation. The sponsor (original Equity holder) shall be an independent legal entity that conducts affordable rental housing business, and shall not conduct commercial housing and commercial real estate development business.
The "Notice" strictly implements the real estate market regulation policy, establishes an effective isolation mechanism in terms of initiators and the use of recovered funds, consolidates the responsibilities of participating institutions, and effectively prevents REITs recovering funds from illegally flowing into commercial housing and commercial real estate development.
The main contents of the "Notice" include: firstly, it clarifies that the initiator should be an independent legal person that conducts affordable rental housing business; secondly, it emphasizes the strict closed-loop management mechanism for the use of recovered funds to ensure that the net recovered funds are preferentially used for new affordable rentals Construction of housing projects, or use in other key areas of infrastructure to make up for shortcomings; the third is to consolidate the main responsibility of the institution, requiring the controlling shareholder and actual controller of the sponsor not to misappropriate the recovered funds; the fourth is to strengthen communication and cooperation, and the CSRC and the country will develop The Reform Commission will guide the Shanghai and Shenzhen stock exchanges, the CSRC and local development and reform commissions to do a good job of recommendation, review and daily supervision.
In the next step, the China Securities Regulatory Commission will work with relevant departments and units to encourage the issuance of REITs for affordable rental housing with clear ownership, mature operating models, and sustainable market-oriented returns in accordance with the principles of marketization and the rule of law, and promote the implementation of pilot projects as soon as possible, while strengthening the market Supervise, urge original rights holders and intermediaries to be honest and trustworthy, perform their duties, and ensure the stable and long-term development of affordable rental housing REITs.
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