【REITs】Financial Supervisory Commission's Chen Hao-lian: Striving to quickly implement REITs interconnection and closely cooperate with mainland authorities

This year’s Budget mentions accelerating the inclusion of Real Estate Investment Trusts (REITs) into mutual market access. Chen Haoliam, Deputy Director of the Financial Affairs and Treasury Bureau, said they are working to implement it as soon as possible and are cooperating closely with the relevant authorities on the Mainland. After the implementation plan is approved by the relevant Mainland authorities, the two sides will issue a joint announcement as soon as possible.

The China Securities Regulatory Commission announced in April 2024 five measures to expand Mainland–Hong Kong capital market mutual access, including including REITs in mutual access. He said the measures will significantly expand the investor base for REITs markets in both places, helping to improve the liquidity and attractiveness of REITs in both markets.

A draft amendment to be introduced to the Legislative Council this year: introducing a mandatory acquisition arrangement or a compromise plan for REITs

To facilitate REITs to carry out privatization and corporate restructuring in a clear and orderly manner, he said the Hong Kong SAR government plans to submit to the Legislative Council by 2026 a draft amendment to introduce, for REITs, a statutory regime regarding mandatory acquisition when it comes to acquisitions and unit buybacks, as well as statutory provisions regarding arrangements or compromise plans. It will also provide investors with protections reflected under a legal framework similar to the Companies Ordinance.

Chen also noted that the Hong Kong SAR government plans to submit a draft bill in the first half of 2027 to provide a stamp duty exemption for transfers of non-residential properties for REITs preparing for listing. This is to support REITs’ inclusion in mutual market access and facilitate REITs’ privatization and corporate restructuring, among other measures. The proposed stamp duty exemption will further support the development of the REITs market.

REITs’ market value at end of February: HK$152.1 billion

As of the end of February 2026, the market value of Hong Kong’s REITs is about HK$152.1 billion, representing a 5.9-fold increase compared with 2005. There are currently 11 REITs listed in Hong Kong. As of the end of February 2026, the average daily turnover is about HK$520 million.

To support the development of Hong Kong’s REITs market, the Legislative Council passed the “Stamp Duty (Miscellaneous Amendments) Ordinance 2024” in December 2024. From December 21, 2024, transfer of property trust fund units has been exempted from stamp duty, enhancing Hong Kong’s competitiveness in property trust funds. In October last year, the Hong Kong Securities and Futures Commission launched a new one-stop “REIT Fund Hotline,” which also streamlined the approval procedures for new REIT funds and the documentation requirements for secondary offerings.

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