The China Securities Regulatory Commission (CSRC) issued a draft announcement for public consultation to introduce a pilot programme for commercial real estate investment trusts (REITs), setting out proposed rules on product design, registration, ongoing management and supervision. Under the draft, a commercial real estate REIT is defined as a closed-end, publicly offered securities investment fund that holds commercial real estate to obtain stable cash flows and distribute returns to fund unitholders. The proposal specifies registration and operating requirements covering fund managers and custodians, due diligence, application materials and eligibility-related requirements for the underlying commercial real estate, and it emphasises the fund manager’s responsibility for proactive operational management. It also tightens accountability for fund managers and professional service providers through compliance with professional standards and regulatory requirements, and clarifies supervisory and risk monitoring and disposal responsibilities across relevant regulators. Other matters would generally follow the existing trial guidance for publicly offered infrastructure REITs. The CSRC will revise the announcement based on feedback and complete the required procedures before issuing and implementing the final version.

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