China is working to introduce real-estate investment trusts, or Reits, under a trial programme, the People’s Bank of China said in a statement on its Web site yesterday, without giving more details.
Shanghai’s city government is considering a plan to allow brokerages or fund management companies to own a 51 per cent controlling stake in Reits, the China Securities Journal reported on Nov 5, citing people familiar with the matter.
Haitong Securities Co, China’s second-biggest brokerage by market value, was chosen for a pilot programme, the report said.
A real estate investment trust is an entity that invests in property and benefits from tax exemptions in return for distributing most of its earnings as dividends.
Source: Business Times, 7 Jan 2010
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