Regulator gives nod to China's first Reit offering

Shanghai

CHINA'S securities regulator has granted approval for the first public sale of units by a real estate investment trust, broadening the financing channels for developers facing a prolonged housing market slump.

The China Securities Regulatory Commission on Monday approved the Reit managed by Penghua Fund Management which will list in Shenzhen following the offering, according to a person at the company who asked not to be identified. The trust will be made up of commercial properties from China Vanke Co in the southern city of Shenzhen and receive cash flows from rental income, the developer said in a statement.