(Yicai) August 3 – The Shanghai Stock Exchange is taking heed from investors who are requiring managers of real estate investment trusts focusing on industrial parks and logistics infrastructure to disclose more detailed information about their financial conditions.

The SSE, which has eight listed REITs for industrial parks and warehouses, recommended that management agencies take on additional responsibilities for interim reporting during a conference yesterday. The eight REITs, which have assets in the Yangtze River Delta and Beijing-Tianjin-Hebei region, have raised a total of CNY22.8 billion (USD3.2 billion) in financing.

A bourse representative said it is necessary to improve the quality of information disclosure. The system should be different from that of ordinary funds, reflecting the characteristics of REITs.

The SSE advises fund managers and management institutions to establish a system for information disclosure. Senior management should monitor media reports and communicate with investors to address their concerns in a timely manner, the source added.

REIT managers should disclose information about the project company’s operational status, cash flow, and stability, as well as any changes in qualifications.

The communication should be based on different types of assets. Managers should be guided to disclose interim reports promptly when operating indicators decline sharply or when significant cash flow providers terminate leases early.

The SSE also said that it will further increase its support to the REIT market to serve the real economy. It will focus on expanding the REIT market and accelerate the introduction of new assets, including data centers, cultural tourism, and water conservancy. Additionally, the SSE will work towards expanding financing for listed REIT projects and promoting REITs for major projects.

The SSE will expand sources of additional funding. It will encourage a market-based allocation of REITs to be included in public funds of funds. Moreover, REITs could attract more investments from institutions such as enterprise annuities, pension funds, and social security funds which tend to focus on long-term goals.

In order to improve asset efficiency, it is important to optimize REITs' operation and management to establish a targeted incentive and constraint mechanism,.

Editor: Emmi Laine