The Securities and Futures Commission (SFC) this week launched the REIT Channel to facilitate the authorisation of new real estate investment trusts (REITs) for public offerings, as part of its efforts to advance the development of Hong Kong’s REIT market.

“By enhancing the regulatory transparency and efficiency for REIT applicants, the latest initiatives underscore the SFC’s commitment to driving the long-term growth of Hong Kong’s REIT market and the city’s appeal as a vibrant fund-raising and investment hub,” said Ms Christina Choi, the SFC’s executive director of investment products.

The new dedicated, one-stop channel enables both local and global REIT applicants to consult the SFC regarding their applications on a confidential basis, thereby enhancing their listing preparation and efficiency, according to a statement by the Hong Kong regulator.  

In parallel, the SFC has streamlined the authorisation process and documentary requirements for REITs, taking into account the latest updates under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (SEHK) and market practices. Under the streamlined process, the SFC expects that a new REIT authorisation application can be decided on within four weeks from take-up under “normal circumstances”.

Moreover, to help secondary offerings of existing SFC-authorised REITs, a circular has been issued to REIT managers setting out certain streamlined documentary requirements.

“We welcome both local and international REIT managers and asset owners to set up their REITs in Hong Kong. With the new initiatives, applicants can seize REIT sector opportunities as they arise, and navigate Hong Kong’s dynamic capital markets with confidence,” Choi said.