JML Response to SFC Consultation on REIT Schemes and CISs Enhancements

We welcome and are generally in support of the proposals outlined in the SFC Consultation Paper (“Consultation Paper”) in March 2024 on (i) introducing a statutory scheme of arrangement and compulsory acquisition mechanism for real estate investment trusts (“REITs”) and (ii) enhancing the SFO market conduct regime for listed collective investment schemes (“CISs”).

We believe the proposals will be conducive to addressing a current gap in the regulatory framework for REITs listed in Hong Kong. The proposals will also more closely align the treatment of REITs with comparable international markets such as Australia and Singapore. The proposed enhancements to CISs are also welcome.

Our responses to the questions raised in the Consultation Paper are set out below.

JML Response to SFC Consultation on REIT Schemes and CISs Enhancements 20240524