Infrastructure REITs to take off, widen investment scope

China will gradually expand the investment scope of the pilot program of infrastructure real estate investment trusts, or infrastructure REITs, a publicly-offered instrument investing in infrastructure projects, the country's top securities regulator said on Friday.

"The commission will enlarge the scope of pilot infrastructure REITs at a proper and steady pace and actively nurture a diversified investor group," said Gao Li, a spokesperson of the China Securities Regulatory Commission.

The CSRC will encourage institutional investors such as banks, insurers, social insurance funds, and securities funds to take part in REITs investment, improve rules and supervision, and ensure a healthy development of the infrastructure REITs market, she said at a press conference on Friday.

Seen as a milestone of China's supply-side reform of the financial system and combat against debt risks, the country's first nine infrastructure REITs will become available for sale to public investors on Monday.

Proceeds raised by the nine pilot REITs will be mainly invested in infrastructure projects that help address weak links in economic development, including highways, industrial parks, warehousing and logistics, sewage treatment and power generation from garbage, Gao said.