Regulators 'working on REIT policy framework'

Regulators are working on a policy framework for a real estate investment trusts open to public investment in China, but uncertainties about tax policies and the future responsibilities shouldered by different regulatory bodies may delay its official introduction, according to people familiar with the matter.

"The overall trend is China is working towards introducing REITs in the future, but related policies might not come out as quick as expected, say, in the coming months," said a source close to the regulators.

"The major regulatory bodies have yet to reach an agreement on future responsibilities on supervision, and in particular, preferential policies to lower transaction taxes, which need further action from the nation's taxation administration," the source said.