Policy Recommendations on Promoting the Growth of the H-REIT Industry

With the goals of keeping Hong Kong at the leading edge of regulation, attracting and protecting investor capital and unleashing the commercial potential of Hong Kong’s REIT sector, Hong Kong REITS Association (HKREITA) issued a letter to the Financial Services and The Treasury Bureau on 17 April 2023 to propose five key policy recommendations as set out below:

1. Stamp duty exemption for the transfer of properties into H-REITs
2. Stamp duty exemption for the trading of H-REIT units
3. Increase in tax transparency
4. Diversification of legal structure of H-REITs
5. Inclusion of H-REITs into the Stock Connect regime

HKREITA has initiated dialogue with the Financial Services and The Treasury Bureau, the Hong Kong Exchanges and Clearing Limited and the Securities and Futures Commission respectively to establish a shared vision of the development of the regulatory and taxation frameworks that will provide the necessary scaffolding for the growth of Hong Kong’s REIT sector.

Document can be viewed here.