Zhi Tong Cai Jing·2025-08-26 23:37Core Viewpoint - The REITs market has stabilized after a two-month correction, with a recent increase of 1.75% over the last five trading days, indicating a potential rebound and new highs by year-end [1][2]. Short-term and Long-term Factors - Three short-term negative factors affecting the REITs market (outflow of trading funds, concentrated unlocks, and institutional profit-taking at mid-year) are nearing exhaustion [1][2]. - Three long-term positive factors remain unchanged: a supply-demand imbalance expected in the next 2-3 years, the attractive asset characteristics amid asset scarcity, and the cyclical resilience of quality assets [1][2]. Market Dynamics - The dynamic distribution of property REITs has increased to nearly 4%, suggesting an acceleration of entry for allocation-type funds, especially as many have missed opportunities earlier in the year [1][2]. - The market is anticipated to complete its bottoming process ahead of schedule in the third quarter, with a strong recovery expected in the fourth quarter as trading funds re-enter [2]. Recommended Sectors - Recommended sectors include: 1. Stable anti-cyclical varieties such as policy-based rental housing and municipal environmental protection [3]. 2. Assets with marginal recovery in demand, including scattered rental logistics in the Yangtze River Delta and highways with sustained traffic recovery [3]. 3. Targets with strong demands for original equity expansion and high-quality reserve assets [3].