Capital Markets


On 21 June 2021, the first batch of four real estate investment trust funds in the field of infrastructure (REITs) were successfully listed at Shenzhen Stock Exchange (SZSE). Over the past year, these products have operated smoothly, the supporting system has been continuously improved, investors have actively participated, and the market function has been gradually brought into play— realizing the phased targets of “a stable and good start”. In June 2022, the relevant person in charge of SZSE said that SZSE will promote the high-quality development of the infrastructure REITs market from five aspects, one of which is “continue to support QFII and RQFII to invest in domestic REITs products”.

Digital bonds can reduce the need for intermediaries and therefore lead to lower fixed costs provide better market transparency by increasing capacity to see trade flows and the identity of asset sellers and buyers and provide a much faster settlement speed. While there are still development milestones necessary to make these benefits apparent, the private sector has begun discussions on how to enter this space.

We explore the defining characteristics of transactions, using the SCAPE framework to understand legal complexity and stress test plans in an evolving landscape. We cover three sectors in this series: (1) Automotive, (2) Aviation, and; (3) Luxury, Fashion and Retail.