Hong Kong’s Securities and Futures Commission (SFC) has published its revised Code on Real Estate Investment Trusts (REIT Code), which took effect as at 29 August 2014.

The REIT Code incorporates the proposals adopted by the SFC in itsConsultation Conclusions on Amendments to the Code on Real Estate Investment Trusts (Conclusions), which seek to liberalise

the investment scope of Hong Kong listed REITs by allowing (i) investment in properties under development or engagement in property development activities and (ii) investment in certain financial instruments, each subject to restrictions and detailed investment caps.

An overview of the key proposals and their implications is set out in our client alert “SFC Amends the REIT Code to Give Flexibility to Invest in Property Development Projects and Financial Instruments.”  The detailed amendments outlined in the Conclusions have been reflected, without modification, in the revised REIT Code, a copy of which can be accessedhere.  

To promote greater understanding and clarification of how the amendments will operate for market practitioners, the SFC has also released a number of Frequently Asked Questions on its website.