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

The 2024-25 budget proposal mentioned accelerating the inclusion of real estate investment trusts (REITs) into Mutual Market Access. Chen Haolian, Deputy Under Secretary for Financial Services and the Treasury, said efforts are under way to implement it as soon as possible, and that they are working closely with relevant Mainland authorities. After the implementation plan is approved by the relevant Mainland authorities, the two sides will issue a joint announcement as soon as possible.

In April 2024, the China Securities Regulatory Commission announced five measures to expand Mutual Market Access between the Mainland and Hong Kong capital markets, including including REITs in Mutual Market Access. He said the measures will significantly expand the investor base for REITs in both places, helping to enhance the liquidity and attractiveness of REITs in both markets.

A draft amendment to be submitted to the Legislative Council this year　to introduce 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 that the Hong Kong government plans to submit to the Legislative Council within 2026 a draft amendment to introduce a statutory regime for mandatory acquisition when acquisitions and unit repurchases are made for REITs, as well as a statutory regime for arrangements or compromise plans. It will also provide investors with protections reflected under a legal framework similar to that embodied in the Companies Ordinance.

Chen also pointed out that the Hong Kong government plans to submit a draft amendment in the first half of 2027 to grant stamp duty exemptions for the transfer of non-residential properties by REITs that are preparing to list. This is to complement the inclusion of REITs in Mutual Market Access and facilitate measures such as privatization and corporate restructuring of REITs. The proposed stamp duty exemptions will further support the development of the REITs market.

REITs market cap at end of February: HK$152.1 billion

As of the end of February 2026, the market capitalisation of Hong Kong’s REITs market was approximately HK$1,521 billion, up 5.9 times compared with 2005. There are currently 11 REITs listed in Hong Kong. As of the end of February 2026, the average daily trading value is approximately 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. Transfers of real estate investment trust fund units have been exempt from stamp duty since December 21, 2024, boosting the competitiveness of Hong Kong real estate investment trusts. The Securities and Futures Commission of Hong Kong launched a new one-stop “REITs Fund Hotline” in October last year, which also streamlines the approval procedures for new REITs and the document requirements for secondary issuances.

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