The Securities and Futures Commission (SFC) has announced the launch of a new REIT Channel aimed at facilitating the authorisation of real estate investment trusts (REITs) for public offerings. The move forms part of the regulator’s broader efforts to strengthen Hong Kong’s REIT market and reinforce its position as a leading regional investment and fundraising hub.

The newly introduced one-stop REIT Channel provides both local and international applicants with direct access to the SFC for consultation on their applications under a confidential framework. According to the regulator, this new process is designed to improve communication efficiency, enhance transparency, and accelerate listing preparation for new REITs entering the market.

In conjunction with the channel’s launch, the SFC has also introduced a streamlined authorisation process and simplified documentary requirements, taking into account recent updates under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (SEHK) and current market practices. Under the new system, the SFC expects that, in normal circumstances, authorisation for new REIT applications can be completed within four weeks of acceptance.

To complement these measures, the SFC has also issued a circular to REIT managers outlining simplified documentation for secondary offerings by existing SFC-authorised REITs. These offerings include rights issues and open offers to existing unitholders, with the revised requirements focusing on key offer-related disclosures rather than information already covered under ongoing reporting obligations.

Christina Choi, the SFC’s Executive Director of Investment Products, said: “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. 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.”