Deloitte China assists listing of ICBC Hebei Expressway REIT

Deloitte China today assisted ICBC Credit Suisse Hebei Expressway Group Expressway Closed-end Infrastructure Securities Investment Fund ("ICBC Hebei Expressway REIT," Fund Code: 508086.SH) to list and trade on the Shanghai Stock Exchange ("SSE"). This is the 1st listed infrastructure real estate investment trust ("REIT") from the Hebei Province and the 1st public highway REIT from the Beijing-Tianjin-Hebei region.

Client overview

The ICBC Hebei Expressway REIT project is part of the Rongwu Expressway section, a component of the "four vertical and three horizontal" expressway network connecting the Beijing-Tianjin-Hebei region with cities around the Xiong'an New Area. At the same time, it contributes to the functions of the reduction in Beijing's non-capital function and transportation of coal in the Western region to the East. It supports the service to the Xiong'an New Area, achievement of large-scale traffic across the regions, and promotion of economic development along its line and the coordinated development of the Beijing-Tianjin-Hebei region.

Deloitte’s role

As one of the core service institutes of the ICBC Hebei Expressway REIT, Deloitte China has been deeply involved in its entire process of offering reporting, fundraising and listing. This includes audits of the historical financial statements of the infrastructure project and reviews of the calculation tables of the REIT’s allotted funds, fund verification and audit of infrastructure project delivery for the REIT. We also offered value-added services, from accounting scheme advisory to inquiries on accounting treatments.

Deloitte China’s professional services team adopted a prudent and dedicated attitude, staying open minded and using its rich industry experience and outstanding technical support and diligence to overcome many difficulties during the reporting and offering process of this engagement. On completing the reporting and issuance work, Deloitte won recognition from the issuer, fund managers and related institutions.

Deloitte China's professional power contributes to development of the listed infrastructure REIT market

As the infrastructure public REITs market enters its fourth year, with a market scale of over RMB100 billion and the normalisation of stable issuance, multiple infrastructure public REITs projects participated in by Deloitte China have successively entered the listing, roadshow, and registration stages.

In 2024, Deloitte China was involved in drafting The Impact of Financial, Tax, and Entity Evaluation on the Issuance of REITs by Original Equity Holders whitepaper, contributing professional wisdom to the accounting treatment and tax implications of public infrastructure REITs. In addition, Deloitte China recently released Key Issues in Accounting Treatment for Infrastructure REITs, summarising crucial issues related to the accounting treatments of infrastructure REITs from the perspectives of the original equity holders, REIT funds and REIT investors. We have provided the market and industry with a comprehensive and complete professional analysis.

We congratulate ICBC Hebei Expressway REIT on its successful listing on SSE. We will continue to provide high quality professional services and outstanding resources integration to assist more clients to take one-step ahead in today's increasingly competitive and complex business environment.