Practices and experiences of the first REITs pilot for water infrastructure
Tong Xuewei
Luo Lin
Xu Liang
Abstract：Accelerating the involvement of water resource projects in infrastructure real estate investment trusts(REITs)can help establish a virtuous cycle to revitalize existing water infrastructure assets and promote effective investment in new water projects.This initiative is of great practical significance for expanding diversified investment and financing channels for the water conservancy sector and improving the capital market's coordinated investment and financing functions.In September 2024,China's first water infrastructure REITs project—the Yinhua Shaoxing Raw Water REIT Project—was officially approved and subsequently listed in November.This paper reviews the application process,specific challenges,and the reforms and innovations implemented during the project's development.Key measures include improving service mechanisms,enhancing water price linkage systems,raising dredging project funds from multiple sources,clarifying inter-reservoir water supply relationships,and establishing diversified innovation mechanisms.Based on the Yinhua Shaoxing Raw Water REIT Project,common issues and bottlenecks in China's water infrastructure REITs projects were analyzed.Recommendations are proposed to establish sound mechanisms for project advancement,strengthen project cultivation and design,drive reforms in critical areas,improve the management of water projects,and promptly summarize and disseminate successful project experiences.These efforts aim to provide valuable insights for the normalization and expansion of water infrastructure REITs issuance.
Keywords：water conservancy REITsinfrastructurewater resources investment and financingYinhua Shaoxing Raw Water REIT Projectcountermeasures
Publication Date：2024-12-12
Online Publishing Date：2025-08-15(First online date of this platform, not the publication date of the document)
Pages：6( 20-25 )