China's first REIT fund starts trading

The first real estate investment trust (REIT) fund in China's domestic market started trading on the Shenzhen Stock Exchange on Wednesday, the Shanghai Securities News reported.

CITIC Securities, the country's largest brokerage, issued the fund product.

REITs mainly invest in existing commercial properties and pay rent collected from them as dividend.

They are prohibited from investing in property development projects and turning into a fundraising channel for developers, according to the newspaper.

The fund product offers an investment alternative in the capital market and is expected to help Chinese investors to diversify their portfolio, said analysts.