Greater Bay Area assets poised to lead surge in China's expanding C-REIT market

Core Insights - The first wave of commercial Chinese real estate investment trusts (REITs) is expected to launch in the next two years, with strong demand anticipated for Greater Bay Area (GBA) assets, which may be oversubscribed [1] - The National Development and Reform Commission (NDRC) has updated the eligibility list for C-REIT programs to include commercial real estate such as shopping centers, hotels, and office buildings, expanding the categories to over 10 [2] - The expansion aims to promote the role of infrastructure REITs in supporting the real economy, aligning with China's goals for high-quality urban development and consumption boosting measures [4] Market Growth - China's pilot C-REITs, launched in 2021, have raised over 200 billion yuan (approximately US$28.3 billion) with nearly 80 C-REITs by the end of last month [5] - The REIT market in China has shown remarkable growth, with an approximate 85% increase in market value last year, positioning it among the top three REIT markets in Asia for the first time in 2024 [6] - The C-REIT market, with only four years of history, is still relatively young compared to mature markets like the US and Japan, indicating significant potential for future growth as it matures and diversifies [7]