Hong Kong exchange’s approval is first step in plan to list asset on Shenzhen bourse as Beijing encourages Reit listings
The e-commerce giant said it could separate an infrastructure real estate investment trust (Reit) and list it on the Shenzhen Stock Exchange, with the underlying asset being the Jiaxing Park, a logistics and warehousing infrastructure hub in eastern China’s Zhejiang province, according to an exchange filing on Monday.
The current Reit structure offers a different path to monetisation. According to the filing, the Reit, officially named the CICC Cainiao Logistics Warehouse Infrastructure Reit, would be managed by CICC Fund and was designed to securitise the Jiaxing Park through an asset-backed special purpose plan.
Upon completion of the spin-off, the relevant project companies would cease to be subsidiaries of Alibaba, and their financial results would no longer be consolidated into the firm’s financial statements.
This plan comes amid a wave of supportive policies from Chinese regulators. In a document released in December, the China Securities Regulatory Commission (CSRC) emphasised its support for issuing commercial Reits that aligned with policy and possessed commercial attributes, aiming to improve listing efficiency. On Friday, the CSRC website revealed that four commercial Reit products had already received registration approval.
Source: News - South China Morning Post
