Quasi-Reits in China spread beyond equity markets

Hong Kong

CHINA'S central bank has authorised the first sale of a "quasi" real estate investment trust (Reit) in the vast interbank bond market, in a move that greatly expands the investor base for the new asset class amid rising commercial property values.

State-owned Anhui Xinhua Media last week launched Industrial Wanxin Jiayue Real Estate Investment Trust Fund ABS, a 553.5 million yuan (S$114.2 million) quasi-Reit structured like a securitisation, which may well be a precursor to the eventual launch of a listed Reit market in China.

After a series of private placements and one stock exchange listing, analysts have welcomed the introduction …