Pilot REITs drive stock surge on mainland bourses

Infrastructure stocks surged in mainland exchanges on Wednesday, as investors expected a newly-launched financing vehicle for the sector will facilitate economic recovery while containing debt risks, analysts said.

Seven listed firms related to infrastructure construction hit the 10-percent daily gain limit as the market reopened on Wednesday, after China launched a pilot program of publicly offered real estate investment trusts, or REITs, during the market closure.

The move has marked the beginning of the development of publicly offered REITs in China and is a milestone in the country's supply-side reform of the financial system, benefiting both short-term and long-term economic growth, according to analysts.