Long Odds: China’s bet on REITs draws sceptics

By Samuel Shen, Yawen Chen and Clare Jim SHANGHAI/BEIJING (Reuters) - China's plans to introduce real estate investment trusts (REITs) mark a crucial step to get private money to fund infrastructure such as toll roads and sewage systems, but authorities have their work cut out in creating a fully-fledged market. In many countries REITs are used as a means for investors to own property via the stock market, enjoying the income from projects such as tenanted office blocks, while allowing developers to free up their balance sheets for new ventures. The test, say experts, is whether Beijing is able to develop a more market-based means of financing future growth, which evolve only slowly but has the advantage of enlarging the pool of available capital and weaning off inefficient state players

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