The exchange received applications from two companies through its electronic filing system and would make a decision on whether to accept them within five working days, the Shanghai Stock Exchange said in a statement.

SHANGHAI: The Shanghai Stock Exchange said Wednesday it had started accepting applications for publicly offered infrastructure real estate investment trusts (REITs), the latest step in efforts by Chinese authorities to get private money to fund infrastructure.

The exchange received applications from two companies through its electronic filing system and would make a decision on whether to accept them within five working days, the Shanghai Stock Exchange said in a statement on its official WeChat account. It did not disclose details of the applications.

Investors use REITs in many other countries to own property through the stock market, enjoying income from projects such as tenanted office blocks. This frees up developers’ balance sheets.

China‘s REITs pilot excludes residential and commercial real estate properties to focus on projects such as data centres, toll highways and sewage systems.

S&P Global Ratings analysts said last year they saw potential for China’s infrastructure REITs to grow into a $300 billion to $735 billion market within a decade, but low returns on infrastructure projects, and tax and legal issues clouded prospects for the market’s growth.

https://realty.economictimes.indiatimes.com/news/industry/shanghai-stock-exchange-starts-accepting-reit-applications/82181484