HTSC(SH:601688) Zhong Guo Jing Ying Bao·2025-05-22 12:16Core Viewpoint - The recent listing of the Huatai Suzhou Hengtai Rental Housing REIT has sparked significant interest in the public REITs market, with a notable opening day increase of 29.99%, reflecting a broader trend of rising valuations in the sector [1][2]. Market Performance - The average increase in public REITs for the year has reached 17.76%, with the CSI REITs Total Return Index showing a 12.94% rise [2]. - Seven newly listed public REITs this year have all seen first-day increases exceeding 10%, with an average first-day increase of 25.29% [2]. Specific Fund Details - The Huatai Suzhou Hengtai Rental Housing REIT, managed by Huatai Securities Asset Management, is the first rental housing REIT in Jiangsu Province, with underlying assets located in the largest "talent rental housing" community in Suzhou Industrial Park [2]. - The fund's offline subscription saw demand reach 222.64 times the initial offering amount, setting a historical record [2]. Investor Sentiment and Risks - Investors are advised to make rational decisions and avoid being swayed by market emotions, particularly regarding premium risks associated with high valuations [1][4][7]. - The fund manager highlighted three main risks: price volatility risk, high premium risk, and operational risk of the underlying infrastructure [4][5]. Valuation and Investment Considerations - The investment value of REITs should be determined by the operational status of the underlying assets, with a focus on cash distribution rates and market conditions [6][7]. - The current REITs market in China is still in its early stages, with significant growth potential, but also a tendency for premiums due to high investor demand [7][8]. - The income approach is the primary valuation method for REITs in China, reflecting the stable income sources and predictable cash flows of infrastructure projects [8].