REITs to get fees help for listings

The government will help develop the real estate investment trust market by subsidizing REITs looking to list to the tune of 70 percent of expenses for professional services subject to a cap of HK$8 million over the coming three years. The subsidies will be provided to REITs...

Staff reporter

Thursday, February 25, 2021

The government will help develop the real estate investment trust market by subsidizing REITs looking to list to the tune of 70 percent of expenses for professional services subject to a cap of HK$8 million over the coming three years.

The subsidies will be provided to REITs authorized by the Securities and Futures Commission to encourage more such listings to reinforce the SAR's role as a capital-raising hub while offering investors a wide range of investment options. Details are imminent from the SFC.

Paul Chan also suggested launching a two-year pilot grant scheme for insurance-linked securities, capped at HK$12 million, to encourage their issuance. The grant amount will depend on maturity, and details are expected from the Insurance Authority.

It has submitted an amendment bill to provide tax concessions for a share of the profits of investment generated by private equity funds operating in Hong Kong and expects to apply to start from 2020-21.

It will also expand the scope of risks for insurers and enhance the group-wide supervision framework by the end of next month. The government is preparing to launch a risk-based capital regime for the industry to replace the rules-based capital adequacy regime.

In assets and wealth management, it plans to allow foreign investment funds to redomicile here for registration as open-ended fund companies or the limited partnership funds after 11 of the first and more than 100 of the latter were set up.

Its subsidies will cover 70 percent of expenses paid to local professional service providers for open-ended fund companies set up or redomiciled here in the next three years, capped at HK$1 million each.

A legislative proposal is planned for the second quarter.

It has submitted an amendment bill to provide tax concessions for carried interest issued by private equity funds operating in Hong Kong and expects to apply to start from 2020-21.