SFC mulls giving HK Reits greater flexibility

Hong Kong's Reits may get more freedom to invest in property developments and certain financial instruments.

Recent proposals submitted to Hong Kong’s securities regulator may broaden the investment mandate of local real estate investment trusts Reits.

The Securities and Futures Commission is holding a consultation through to the end of February on these proposed amendments, which if passed, would give Hong Kong Reits more flexibility when investing, according to an SFC statement.

The proposals include relaxing current restrictions on Reit investments in properties still under development, as well as lifting a ban on investments on property-related financial instruments.

At the moment local Reits are prohibited from investing in vacant land or engaging in developments, including refurbishments, retrofits and renovations....

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