BEIJING, Nov. 5, 2009 (Xinhua News Agency) -- China will launch Real Estate Investment Trusts (REITs) in Beijing, Shanghai, Tianjin and Shenzhen before the yearend, China Securities Journal quoted an informed insider as saying.
The insider added that Shanghai would establish an investment firm to manage REITs and that the firm would be set up by a current securities dealer or investment firm, which would hold 51 percent of equity. It is believed that Haitong Securities will be among the first considered for this role.
Besides this, Shanghai is planning to introduce 10 innovative financial products before the end of this year.
REITs are entities that invest in different kinds of real estate or real-estate related assets. They receive special tax considerations and typically offer investors high yields, as well as highly liquid method of investing in real estate.
