China Overseas Development (00688) plans to split the Foshan Qiandeng Lake Huanyu City REIT and will sign up for about 20% of the fund share on the Shenzhen Stock Exchange

Zhitong Finance App News, China Overseas Development (00688) announced that on September 7, 2026, Huaxia Fund and CITIC Securities submitted application materials for public fund registration and listing to the China Securities Regulatory Commission and the Shenzhen Stock Exchange. Prior to the proposed listing application, the company had submitted an application to the Stock Exchange under Section 15 of the Application Guidelines and an application for exemption from the guaranteed quota requirements in section 15 (3) (f) of the Application Guidelines.

REIT's related asset is a shopping center located in Nanhai District, Foshan City, Guangdong Province, China (Foshan Qiandeng Lake Huanyu City Project), that is, this project, owned by the project company. As of the date of this announcement, the project company is a wholly-owned subsidiary of CNOOC Enterprise Development (that is, an indirect wholly-owned subsidiary of the company).

As far as the proposed spin-off is concerned, Huaxia Fund (as the public fund manager) will establish a public fund as a publicly listed real estate securities investment fund and be responsible for its management and administration. Currently, the public fund is expected to raise a total of RMB 1,534 billion. At the time of the proposed listing, the group will subscribe for approximately 20% of the total shares of issued funds. Regarding the proposed spin-off, it is mentioned that according to the provisions of applicable Chinese laws and regulations, the asset support special plan will be established by the asset support special plan manager. After the establishment of the public fund, the public fund will use the proceeds to subscribe for all the rights of the asset support special plan. Afterwards, the special asset support plan will use the subscription money to the group to acquire all the rights of the project company, repay the project company's debts, supplement working capital, pay related transaction taxes and fees, and pay the establishment and transaction fees of the public fund and asset support special plan. Upon completion of the relevant acquisition, the project company will be 100% owned by REIT and will no longer be a subsidiary of the company. Following the proposed spin-off, REIT will not become a subsidiary of the company and will not be incorporated into the company's financial accounts.