The Securities and Futures Commission (SFC) has released consultation conclusions on proposals to provide Hong Kong Real Estate Investment Trusts (REITs) with more flexibility in making investments.
The proposals, which received broad support, will be implemented with some modifications to clarify specific requirements such as those which apply to minority-owned properties.
“These amendments will help maintain the competitiveness of the Hong Kong REITs market and facilitate its long-term growth while ensuring investor protection,” said Mr Ashley Alder, the SFC’s Chief Executive Officer.
The revised REIT Code will become effective upon gazettal. For connected party transactions which were entered into before the effective date, a transitional period of six months will be allowed for REITs to comply with the revised requirements. The SFC will also provide further guidance to the industry by way of frequently asked questions.