Adviser calls for REITs to shore up real estate

Further policy actions are needed to address the liquidity stress facing some real estate developers, with real estate investment trusts, or REITs, playing a big role, according to a national political adviser.

Zhang Yichen, a member of the 14th National Committee of the Chinese People's Political Consultative Conference, said it is advisable for China to launch a special REITs product to help address the risk that some real estate developers lack financing to deliver presold housing projects.

REITs refer to a type of equity investment instrument that invests in occupied real estate projects and distributes project cash flow to investors.