SHANGHAI : China's first batch of publicly traded rental property real estate investment trusts was snapped up in Shanghai and Shenzhen by yield-hungry investors this week, opening up a new financing channel for the struggling real estate sector.
China launched a public REITs market based on infrastructure projects about a year ago, but this week's launches mark the first time the REIT market has been tested for residential rental properties. Sources told Reuters on Tuesday that China will guarantee new onshore bond issues by a few select private developers to support its embattled property sector.
China has been encouraging developers to build homes for rent as part of President Xi Jinping's vision for"Common Prosperity".
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