Group 1 - The first foreign-funded consumer REIT, Huaxia CapitaLand Commercial REIT, was launched on the Shanghai Stock Exchange with a fundraising target of 2.2872 billion yuan and received over 309.17 billion yuan in subscriptions, achieving a subscription multiple of 535.2 times for public investors and 252.6 times for institutional investors [1] - The fund is managed by CapitaLand, the largest REIT manager in the Asia-Pacific region, with underlying assets including CapitaLand Yunshang and CapitaLand Yuhua Pavilion [1] - CapitaLand's CEO emphasized the integration of international REIT management experience with the Chinese market, providing domestic investors with a new channel for quality asset allocation in a low-interest-rate environment [1][2] Group 2 - The issuance of public REITs is seen as beneficial for CapitaLand to revitalize existing assets and optimize capital structure, supporting new project investments and creating a positive cycle of fundraising, investment, management, and exit [2] - The Chinese public REIT market is expanding, with increasing market size and product diversity, particularly in the consumer REIT sector, which presents significant growth potential [1]

Core Insights - The successful listing of Huaxia CapitaLand Commercial REIT on the Shanghai Stock Exchange marks a significant milestone in the internationalization and diversification of China's public REITs market, coinciding with the 35th anniversary of diplomatic relations between China and Singapore [1][16] Group 1: Fund Overview - Huaxia CapitaLand Commercial REIT is initiated by CapitaLand, a leading global real estate asset management company, and managed by CITIC Securities and Huaxia Fund, with underlying assets of CapitaLand Plaza Yunshang and CapitaLand Plaza Yuhua Pavilion [5][12] - The fund aims to raise 2.2872 billion yuan, with total subscriptions exceeding 309.17 billion yuan, resulting in an oversubscription rate of 535.2 times for public investors and 252.6 times for institutional investors [5][10] Group 2: Market Potential and Strategy - CapitaLand's CEO emphasized the integration of international REITs management experience with the Chinese market, providing domestic investors with new avenues for quality asset allocation in a low-interest-rate environment [8][16] - The launch of Huaxia CapitaLand Commercial REIT reflects CapitaLand's confidence in the future development opportunities of China's public REITs market, particularly in the consumer REITs sector, which has significant growth potential [10][12] Group 3: Long-term Development and Ecosystem - CapitaLand manages over 40 shopping centers across 18 cities in China, with total asset value exceeding 80 billion yuan, which is expected to continuously inject quality assets into Huaxia CapitaLand Commercial REIT [10][13] - The successful issuance of public REITs allows CapitaLand to revitalize existing assets and optimize capital structure, creating a virtuous cycle of fundraising, investment, management, and exit [13][16]

Report Industry Investment Rating No information about the industry investment rating is provided in the given content. Core Viewpoints - The REITs market had an overall correction this week, with all eight major sectors closing down, and liquidity continued to decline. The current (weekly) average daily turnover rate has dropped to 0.3% - 0.4%, hitting a new low for the year. However, there was a window for the registration of first - issue projects before the National Day, with three public REITs registering for effect on September 23. Among them, CITIC Construction Investment Shenyang International Software Park REIT will conduct price inquiries and set prices next week, and China Asset Management CNOOC Commercial REIT has completed price inquiries this week and will set prices next week. Both will be officially issued on the 13th after the holiday. In addition, China Asset Management CapitaLand Commercial REIT will be officially listed on the Shanghai Stock Exchange on September 29 [2]. Summary by Directory 1. Primary Market: Three First - Issue Public REITs Made New Progress - As of September 26, 2025, 16 public REITs have been successfully issued this year, with an issuance scale of 33.66 billion yuan, a year - on - year decrease of 12.4%. This week, three first - issue public REITs made new progress: Huaxia Anbo Warehouse Logistics REIT and CITIC Construction Investment Shenyang International Software Park REIT (the first public REIT in Northeast China) were registered for effect, and Huaxia CNOOC Commercial REIT completed price inquiries. Currently, in the approval process, there are 10 first - issue REITs declared, 3 having been questioned and responded, 3 having passed the review, and 3 registered for effect and awaiting listing; for expansion and issuance, 8 have been declared, 6 have been questioned and responded, and 6 have passed the review [3]. 2. Secondary Market: Liquidity Continued to Weaken This Week 2.1 Market Review: The CSI REITs Total Return Index Fell by 0.65% - This week, the CSI REITs Total Return Index (932047.CSI) closed at 1064.42 points, a decline of 0.65%, underperforming the CSI 300 by 1.71 percentage points and the CSI Dividend by 0.39 percentage points. The year - to - date increase of the CSI REITs Total Return Index is 9.97%, underperforming the CSI 300 by 5.66 percentage points and outperforming the CSI Dividend by 12.24 percentage points. In terms of project attributes, property - type REITs fell by 0.97% and franchise - type REITs fell by 1.07%. In terms of asset types, the energy (- 0.24%), warehouse logistics (- 0.46%), environmental protection and water services (- 0.49%), and park (- 0.64%) sectors performed better. Among individual securities, 8 rose and 65 fell. CITIC Construction Investment SPIC New Energy REIT (+ 0.98%), CICC Liandong Innovation REIT (+ 0.71%), and AVIC Jingneng Photovoltaic REIT (+ 0.65%) ranked in the top three, while E Fund Shenzhen Expressway REIT (- 4.15%), CITIC Construction Investment Mingyang Smart Energy New Energy REIT (- 4.03%), and Ping An Ningbo Transportation Investment REIT (- 4.02%) ranked in the bottom three [3]. 2.2 Liquidity: Both Turnover Rate and Trading Volume Decreased - The average daily turnover rates of property - type/franchise - type REITs this week were 0.30%/0.40%, down 11.86/2.39 basis points from last week. The trading volumes within the week were 276 million/112 million shares, a week - on - week decrease of 24.24%/3.64%. The data center sector was the most active [3]. 2.3 Valuation: The Valuation of the Affordable Housing Sector was Relatively High - From the perspective of ChinaBond valuation yields, the yields of property - type/franchise - type REITs were 3.78%/3.86% respectively. The warehouse logistics (5.29%), transportation (4.70%), and park (4.34%) sectors ranked in the top three [3]. 3. This Week's News and Important Announcements - On September 22, 2025, the Shenzhen Stock Exchange approved two public REITs products: Huaxia CNOOC Commercial Asset REIT and Huaxia Anbo Warehouse Logistics REIT. On September 23, the first public REIT in Northeast China, CITIC Construction Investment Shenyang International Software Park Closed - end Infrastructure Securities Investment Fund, was approved by the CSRC. There were also various operation data announcements and dividend announcements for multiple REITs [35][36]

Core Viewpoint - The real estate industry is experiencing a significant decline in both revenue and profitability, with major listed companies reporting substantial losses and a challenging outlook for the near future [1][2][4][7]. Revenue and Profitability - In the first half of 2025, typical listed real estate companies achieved total revenue of 12,868 billion yuan, a year-on-year decrease of 15%, while operating costs were 11,454 billion yuan, down 16% [1]. - The gross profit for these companies was 1,414 billion yuan, reflecting a 9% decline compared to the previous year [1]. - The net profit loss for the industry expanded to 2,762 billion yuan in 2023, further increasing to 3,397 billion yuan in 2024, and reaching 902 billion yuan in the first half of 2025 [2]. Profitability Ratios - The overall gross margin for the industry in the first half of 2025 was 10.87%, an increase of 1.8 percentage points from the entire year of 2024, while the net margin was -7.45% [4]. - Excluding companies that have faced financial distress, the gross margin for 27 stable firms was 15.09%, up 2 percentage points from 2024, with a net margin of 1.71%, indicating a recovery from previous losses [4]. Factors Affecting Profitability - The decline in profitability is attributed to high land acquisition costs, increased sales pressure, and asset impairment provisions, which have negatively impacted current profit performance [4][7]. - Companies are resorting to discount promotions to boost sales, leading to a situation where revenue increases do not translate into profit growth [4]. Industry Outlook - The industry is at a turning point, with a shift in policy focus from deleveraging to risk prevention, and a change in demand dynamics from broad increases to differentiation [7]. - Major companies like Longfor and Vanke express cautious optimism, highlighting the ongoing demand for quality housing in core urban areas despite recent price declines [7][8]. Strategic Planning of Key Companies - China Resources Land plans to maintain an annual opening pace of around six shopping centers, with a focus on public REITs to enhance asset value [9]. - China Merchants Shekou aims to optimize asset structure and enhance operational capabilities through a new asset management model [9]. - Longfor Group anticipates a 10% growth in its commercial sector and plans to open approximately ten new projects annually in the coming years [9]. - New City Holdings is focused on enhancing its commercial operations and leveraging financial policies to improve its capital structure [9].

Core Viewpoint - The REITs market in China is experiencing steady growth, with a focus on enhancing investor trust and improving operational quality among various REITs projects [1][4][7]. Group 1: Performance of Listed Projects - The infrastructure public REITs market in China is expanding, with a steady increase in issuance scale and positive market performance [2]. - For example, the CICC Xiamen Anju REIT reported a total income of 40.38 million yuan in the first half of 2025, a year-on-year increase of 3.04% [2]. - The Guotai Junan Dongjiu New Economy REIT achieved approximately 50.57 million yuan in income and a net profit of about 22.76 million yuan in the same period [2]. - The CITIC Securities National Electric Power New Energy REIT reported operating income and net profit of 498 million yuan and 171 million yuan, respectively, in the first half of 2025 [2]. - The Jiashi Wumei Consumption REIT generated approximately 52.86 million yuan in income and 35.29 million yuan in distributable amounts from January 1 to June 30, 2025 [3]. - The Huitianfu Jiuzhoutong Pharmaceutical REIT achieved a consolidated income of 36.02 million yuan and a net profit of 12.86 million yuan in the first half of 2025 [3]. Group 2: Strengthening Investor Trust - The five REITs projects collectively distributed over 550 million yuan in dividends in the first half of 2025, with an actual dividend rate of 3.3% [4]. - The average increase of over 20% in project performance since 2025 is attributed to proactive management by operating institutions [4]. - Effective incentive mechanisms have been established, allowing management teams to benefit from exceeding performance expectations [4][5]. - A multi-layered information disclosure system has been constructed to enhance transparency and investor trust [5][6]. Group 3: Ongoing Asset Expansion - As of the end of the second quarter of 2025, the total fundraising scale of China's public REITs reached 184.7 billion yuan, with a total market value of 205.5 billion yuan, reflecting a 10.4% increase from the end of the first quarter [7]. - Industry insiders expect the public REITs market to further expand, with market value projected to reach between 400 billion yuan and 500 billion yuan within three years [7]. - The CICC Xiamen Anju REIT is accelerating its expansion efforts, planning to acquire new rental housing projects to enhance its asset portfolio [8].

Core Insights - The registration status of the Huaxia Zhonghai Commercial Asset Closed-End Infrastructure Securities Investment Fund and the Huaxia Anbo Warehousing and Logistics Closed-End Infrastructure Securities Investment Fund has been updated to "registered effective" as of September 22 [1] - The Huaxia Anbo Warehousing REIT is the only REIT among those listed and filed that has all its assets located in the Greater Bay Area [1] - The CITIC Construction Investment Shenyang International Software Park Closed-End Infrastructure Securities Investment Fund has also received approval from the China Securities Regulatory Commission on September 22, marking it as the first public REIT project successfully approved in Northeast China [1]

Group 1 - Three public REITs products have been approved, indicating continuous expansion of the public REITs market in China [1][2] - The approved REITs include the 华夏安博仓储REIT and 华夏中海商业REIT, both registered on September 22, 2025 [2][3] - 华夏安博仓储REIT is the only REIT with all assets located in the Greater Bay Area among listed and declared logistics REITs [1][2] Group 2 - 华夏安博仓储REIT has a fund contract duration of 41 years and a total fundraising amount of 400 million shares [3] - The initial assets of 华夏安博仓储REIT are three logistics projects in the Greater Bay Area, with a total assessed value of approximately 2.171 billion [4] - 华夏中海商业REIT has a fund contract duration of 24 years and a total fundraising amount of 300 million shares [5] Group 3 - The 佛山映月湖环宇城 project, part of 华夏中海商业REIT, has a total construction area of approximately 153,500 square meters and an average annual revenue growth rate of 24.75% from 2020 to 2024 [5] - The沈阳国际软件园公募REIT has a fund contract duration of 37 years and a total fundraising amount of 300 million shares [6] - The initial assets of 沈阳国际软件园公募REIT consist of 13 industrial buildings with a total property area of 201,200 square meters [9]

Core Insights - The Xi'an High-tech Zone REITs project has been officially recommended to the China Securities Regulatory Commission, marking the first local asset REITs project in Shaanxi Province entering the issuance phase [1] - The project involves 13 buildings with a total construction area of 325,000 square meters and an assessed net value of 1.36 billion yuan, with expected net recovery funds of approximately 414 million yuan post-issuance [1][2] - The Shaanxi Provincial Development and Reform Commission has established various mechanisms to support REITs projects, including a project reserve library and pre-issue guidance [2] Group 1 - The Xi'an High-tech Zone REITs project is located in the software new city of Xi'an High-tech Zone, with the original rights holder being Xi'an High-tech Group [1] - The project has undergone multiple on-site meetings to address issues and has successfully completed compliance procedures [1] - The project is expected to be officially listed and issued within the year, following accelerated progress in communications with national authorities [1] Group 2 - As of now, 73 REITs projects have been issued nationwide, with a cumulative issuance scale exceeding 190 billion yuan, covering ten sectors including toll roads, industrial parks, and renewable energy [2] - The Shaanxi Provincial Development and Reform Commission has reported four REITs projects to the national level, including the first photovoltaic REITs project in the country [2] - The commission aims to expand the provincial REITs project reserve library and achieve breakthroughs in more sectors, promoting a virtuous cycle of investment and reinvestment [2]

Group 1: Supermarket Transformation and Performance - In 2024, the company initiated a transformation of its supermarket format, launching nine lifestyle theme pavilions and one fulfillment center, with the first SP@CE3.0 located in Shenzhen Baoan [2] - The company standardized modifications in five stores and made partial adjustments in 17 stores, resulting in a doubling of sales within three days post-opening for the standardized stores, with ongoing year-on-year growth in customer traffic and sales [2] Group 2: Cost Reduction and Efficiency Improvement - The company has been actively pursuing cost reduction and efficiency enhancement initiatives, optimizing resource allocation and focusing investments in high-potential areas and core formats to improve overall asset turnover and profitability [2] Group 3: Public REITs Progress - The company is in the process of issuing a public REIT, utilizing the Suzhou Xiangcheng Rainbow Shopping Center as the underlying asset, which has been formally accepted by the China Securities Regulatory Commission and the Shenzhen Stock Exchange [3]

Core Viewpoint - The domestic warehousing and logistics industry is steadily recovering, reflecting resilience in public REITs market performance, which shows a stable and positive operational trend [1] Group 1: Overall Performance - Five publicly listed warehousing and logistics REITs in Shanghai reported a combined revenue of approximately 413 million yuan and a combined EBITDA of about 281 million yuan for the first half of 2025 [2] - The total distributable amount for these REITs reached approximately 306 million yuan, with a total dividend distribution of about 252 million yuan for three specific projects [2] Group 2: Individual Project Performance - China Aviation Easy Business Warehousing Logistics REIT maintained a rental rate of 87.68% and a rent collection rate of 97.93%, with a total distributable amount of 49.06 million yuan for the first half of 2025 [2] - Huazhong Waigaoqiao REIT achieved a rental rate of 92.33% and a rent collection rate of 98.99%, with a cash distribution rate of 1.94% for the same period [3] - Jia Shi JD Warehousing Infrastructure REIT reported a 100% rental and collection rate, with a total distributable amount of approximately 37.18 million yuan [3] - Huitianfu Jiuzhoutong Pharmaceutical REIT generated a combined revenue of 36.02 million yuan and a net profit of 12.86 million yuan, with a cash distribution rate of 1.31% [3] - Zhongjin Pulos REIT maintained a rental rate above 90%, with a year-on-year increase of 6.6 percentage points in rental rates [4] Group 3: Market Dynamics - The warehousing logistics REITs' stable performance is attributed to an optimized supply-demand structure, continuous improvement in the logistics industry, and strong policy support [5] - In the first half of 2025, the national retail sales of consumer goods reached 24.55 trillion yuan, with online retail sales growing by 8.5% [5] - The logistics industry is experiencing a significant expansion, with the logistics business volume index remaining in the expansion range for six consecutive months [6] Group 4: Expansion Plans - The characteristics of warehousing logistics REITs suggest a focus on quality over quantity, with plans for asset expansion primarily through existing projects [7] - Companies are actively working on revitalizing existing assets and integrating acquisitions to enhance their REIT platforms [7][8] - The China Aviation Easy Business Warehousing Logistics REIT has also initiated asset screening for expansion to improve cash flow stability and optimize risk management [8]