(Yicai Global) June 21 -- China’s first publicly sold real estate investment trusts all jumped on their first day of trading on the Shanghai and Shenzhen stock exchanges today, as the government pilots a new investment vehicle aimed at directing private capital into infrastructure projects and taking some of the burden off debt-laden local governments.

The nine REITs in the offering, five of which are traded in Shanghai and four in Shenzhen, are related to infrastructure and include industrial parks, warehousing and logistics, highway tolls and sewage treatment in key economic areas across China including the Beijing-Tianjin-Hebei region, the Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Delta.

The introduction of pilot infrastructure REITs is an important measure to strengthen the capital market's ability to serve the real economy, further innovate investment and financing mechanisms and effectively revitalize existing assets, said Cai Jianchun, general manager of the Shanghai Stock Exchange.

The trust backed by the Shekou Industrial Zone in Shenzhen was the biggest gainer, soaring 14.7 percent to CNY2.70 (USD0.40). This was followed by Avic Shougang Biomass’ waste treatment plant in Beijing, which surged 10 percent to finish at CNY14.70 (USD2.27). The third best performer was the expressway connecting Shanghai with Ningbo in eastern Zhejiang province, which ended the day up 5 percent at CNY9.20.

Mobilizing and guiding resources to the infrastructure field through REITs can effectively revitalize stock assets and enrich market products, providing investors with medium-risk, medium-yield financial instruments to attract long-term capital investment, Chen Fei, director of the Corporate Bond Supervision Department of the China Securities Regulatory Commission, said at the listing ceremony held at the Shanghai Stock Exchange this morning.

The issuance of infrastructure REITs can help expand the proportion of direct financing, reduce the macro-leverage ratio and prevent risks caused by leverage, said Han Zhifeng, deputy director of the Fixed Asset Investment Department of the National Development and Reform Commission. It also promotes the transformation of savings and funds into the real economy, improves the quality and efficiency of financial services to the real economy and serves as new channels for investors to participate in infrastructure equity investment, he added.

Editor: Kim Taylor