Report Summary 1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints - In May 2025, 94 corporate asset - backed securities were issued, with a total issuance scale of 83.21 billion yuan. Compared with the previous month, the number of issuances decreased by 54, and the issuance scale dropped by 36.11%. Compared with the same period last year, the number of issuances increased by 19, and the issuance scale rose by 24.96%. The underlying asset types mainly included personal consumer finance, CMBS, corporate financial leasing, accounts receivable, and factoring claims. The interest rate center of AAAsf - rated securities with a term of about one year was roughly between 1.80% and 2.00%, and the median decreased by about 17BP month - on - month and about 37BP year - on - year [5][22]. 3. Summary by Directory 3.1 Issuance Situation - **Overall Issuance**: In May 2025, 94 corporate asset - backed securities were issued, with a total scale of 83.21 billion yuan. Compared with the previous month, the number decreased by 54, and the scale dropped by 36.11%. Compared with the same period last year, the number increased by 19, and the scale rose by 24.96% [5][6][22]. - **Issuance Venue**: In May 2025, the Shanghai Stock Exchange issued 68 products with an issuance amount of 64.898 billion yuan, accounting for 77.99%. The Shenzhen Stock Exchange issued 26 products with an issuance amount of 18.313 billion yuan, accounting for 22.01% [6]. - **Original Equity Holders**: The top five original equity holders in terms of issuance scale were Beijing Financial Street Investment (Group) Co., Ltd. (5.021 billion yuan, 6.03%), Shenghe (Shenzhen) Commercial Factoring Co., Ltd. (4.096 billion yuan, 4.92%), Shanghai Banghui Commercial Factoring Co., Ltd. (4 billion yuan, 4.81%), Shanghai Real Estate Housing Development Co., Ltd. (3.299 billion yuan, 3.96%), and China Railway Trust Co., Ltd. (3.277 billion yuan, 3.94%). The total issuance scale of the top five was 19.693 billion yuan, accounting for 23.67%, and that of the top ten was 33.11 billion yuan, accounting for 39.79% [7]. - **Managers**: The top five managers in terms of new management scale in May 2025 were Ping An Securities Co., Ltd. (15.40%), Huatai Securities (Shanghai) Asset Management Co., Ltd. (12.48%), Shanghai Guotai Junan Securities Asset Management Co., Ltd. (9.93%), CITIC Securities Co., Ltd. (9.77%), and China Merchants Securities Asset Management Co., Ltd. (7.67%). The total new management scale of the top five was 45.96 billion yuan, accounting for 55.23%, and that of the top ten was 62.748 billion yuan, accounting for 75.41% [9][14]. - **Underlying Asset Categories**: The underlying asset types of corporate asset - backed securities issued in May 2025 included personal consumer finance, CMBS, corporate financial leasing, accounts receivable, and factoring claims. Personal consumer finance had 22 products issued, accounting for 19.98% of the scale; CMBS had 7 products issued, accounting for 15.88%; corporate financial leasing had 12 products issued, accounting for 14.84% [12]. - **Product Scale Distribution**: Products with a scale of (5, 10] billion yuan had the largest number of issuances (42), accounting for 41.30% of the total scale [15]. - **Term Distribution**: The shortest - term product was 0.46 years, and the longest - term was 20.90 years. Products with a term of (1, 3] years had the largest number of issuances (47), accounting for 38.80% of the scale [15][17]. - **Level Distribution**: AAAsf - rated securities accounted for 88.12% of the issuance scale [17]. - **Issuance Interest Rate**: The interest rate center of one - year - around AAAsf - rated securities was roughly between 1.80% and 2.00%, with the median decreasing by about 17BP month - on - month and about 37BP year - on - year [20][22]. 3.2 Filing Situation In May 2025, 150 corporate asset - backed securities were filed with the Asset Management Association of China, with a total scale of 137.968 billion yuan [5][23] 3.3 Secondary Market Trading Situation - In May 2025, corporate asset - backed securities had 3,376 transactions in the exchange market, with a total transaction amount of 73.596 billion yuan. The number of transactions decreased by 10.40% month - on - month, and the transaction amount decreased by 27.89% month - on - month. Compared with the same period last year, the number of transactions increased by 44.71%, and the transaction amount increased by 40.72%. The Shanghai Stock Exchange had 2,672 transactions with an amount of 59.593 billion yuan (80.97%), and the Shenzhen Stock Exchange had 704 transactions with an amount of 14.003 billion yuan (19.03%) [5][24]. - The more active underlying asset types in the secondary market in May 2025 were class REITs, CMBS, supply chain, personal consumer finance, and corporate financial leasing, with transaction amount ratios of 26.06%, 12.37%, 11.83%, 10.25%, and 9.36% respectively [24]. 3.4 June 2025 Maturity Situation Analysis - As of the end of May 2025, 167 outstanding corporate asset - backed securities were due for repayment in June 2025, with a total scale of 43.924 billion yuan. - The main underlying asset categories of due securities in June 2025 were accounts receivable, supply chain, specific non - financial claims, and personal consumer finance, with due scale ratios of 36.64%, 19.23%, 17.01%, and 15.22% respectively. - Among the original equity holders, China Cinda Asset Management Co., Ltd. had 1 due security with a repayment scale of 4.03 billion yuan (9.18%); China Railway Capital Co., Ltd. had 1 due security with a repayment scale of 3.799 billion yuan (8.65%); China Orient Asset Management Co., Ltd. had 1 due security with a repayment scale of 3.441 billion yuan (7.83%) [26].

Investment Rating - The report suggests a positive outlook on the real estate sector, particularly focusing on the potential of asset-backed securities and public REITs as investment opportunities [3][4]. Core Insights - The asset-backed securities (ABS) market in China has surpassed 3 trillion yuan, indicating its significance in the capital market. The growth in public REITs is expected to provide better exit channels for real estate companies, especially those with substantial real estate holdings [2][3][27]. - The report emphasizes the advantages of real estate as a suitable asset for securitization due to its inherent rental properties that generate stable cash flows and potential for appreciation [13][14]. Summary by Sections 1. Asset Securitization Overview - Asset securitization has evolved into a crucial financing tool in China's capital market, with a focus on transforming illiquid assets into liquid securities [13][14]. - The report categorizes standardized asset securitization products into credit ABS, corporate ABS, and asset-backed notes (ABN), highlighting the differences in regulatory oversight and asset types [25][26]. 2. Market Scale and Growth - As of May 2025, the total scale of asset securitization products in China reached 3.09 trillion yuan, accounting for 6.2% of the total bond market [27][29]. - The issuance of asset securitization products saw a significant increase in 2024, with 2,085 products issued, totaling 1.98 trillion yuan, marking a year-on-year growth of 6.7% [36][38]. 3. REITs Development - The report outlines the development of REITs in China, noting the transition from initial trials to a more structured and regular issuance process, with a total of 66 public REITs issued by May 2025, amounting to approximately 1744 billion yuan [19][21][22]. - The expansion of REITs into various sectors, including rental housing and commercial real estate, is highlighted as a significant opportunity for real estate companies to optimize their asset management and liquidity [3][19]. 4. Investment Recommendations - The report recommends focusing on companies with stable and mature asset portfolios in the long-term rental apartment and commercial real estate sectors, such as China Resources Land, China Overseas Development, and Longfor Group [3][4].

Core Viewpoint - The article highlights that major listed real estate companies are increasingly utilizing financial tools, such as public REITs and insurance capital, to revitalize their commercial assets and transition towards a "light asset operation" model [1][3]. Group 1: Company Actions - Ruian Real Estate announced a transaction involving the transfer of 100% equity in its subsidiaries, resulting in a total consideration of approximately 3.49 billion yuan, with a net cash inflow of about 683 million yuan for operational funding [1][2]. - China Overseas Development plans to list its Nanhai Yingyuehu Huanyu City project in Foshan through a public infrastructure REIT, aiming to raise 1.355 billion yuan [2][3]. Group 2: Industry Trends - The trend of utilizing REITs for asset securitization indicates a new phase in the "light asset transformation" of real estate companies, allowing them to shift from asset holders to investment participants and operators [3]. - The expansion of the REITs market has encouraged various real estate firms to actively participate in public REIT issuance, enhancing their financial flexibility and operational sustainability [3].

Core Viewpoint - The A-share market has experienced a structural "market" in public fund issuance since June, with a significant increase in new fund sizes, particularly in bond funds, while passive index products have seen a decline in popularity [1][2]. Fund Issuance Overview - The total new fund issuance in June exceeded 90 billion yuan, with bond funds raising 43.285 billion yuan, accounting for 47.63% of the total, and an average size of 19.68 billion yuan per fund [3]. - Notably, two policy financial bond index funds raised 60.01 billion yuan and 60 billion yuan respectively, indicating strong institutional demand for high-quality pure bond products [3]. Fund Types and Performance - Mixed-asset FOF funds raised 91.11 billion yuan, representing 10.03% of the total, with the largest fund, Oriental Red Yingfeng, raising 65.73 billion yuan in just 7 days, highlighting the growing recognition of asset allocation products [4]. - The issuance of mixed funds reached 215.71 billion yuan, the highest proportion since January 2023, reflecting institutional enthusiasm for equity market positioning [4]. Passive Index Products - The issuance of passive index products has cooled, with many tracking broad indices like the CSI A500 and CSI 300, showing limited differentiation and lower fundraising amounts, such as 2.52 billion yuan and 2.34 billion yuan for specific ETFs [5]. Innovative Fund Trends - The popularity of new floating-rate funds has surged, with 13 out of 26 approved funds raising over 12.6 billion yuan, indicating a significant advancement in fund fee reform [6]. - Innovative funds, such as the first central enterprise commercial real estate REIT, raised 5 billion yuan and ended fundraising early, reflecting market interest in quality asset securitization products [6]. Market Dynamics - The new fund market continues to reflect a "strong bond, weak equity" trend, driven by decreased investor risk appetite and a shift towards low-volatility bond products [7]. - Despite overall market issuance differentiation, innovative products like Sci-Tech theme ETFs and REITs have attracted attention, indicating a demand for structural investment opportunities [7]. Future Outlook - As market conditions improve, the issuance of floating-rate funds is expected to continue, with a gradual recovery in equity fund issuance while bond funds will remain crucial in asset allocation [8].

Group 1 - The article discusses the urgent need for funding in green port construction amid the global "dual carbon" strategy, highlighting asset securitization as an innovative financing tool for this development [1][2] - Green ports are defined as modern ports that integrate environmental protection throughout their planning, construction, and operation, utilizing technological innovation and management optimization to achieve energy conservation and emission reduction [1] - The core mechanism of green port revenue rights ABS involves transforming future cash flows from port operations into tradable financial products, thereby isolating risks and providing funding support for port construction [1][2] Group 2 - The basic operational process of green port revenue rights ABS includes constructing an asset pool, establishing a Special Purpose Vehicle (SPV) for risk isolation, designing a credit enhancement system, and managing cash flows effectively [2][3] - Compared to traditional financing methods like bank loans and government subsidies, green port revenue rights ABS offers significant advantages such as broadening financing channels, reducing financing costs through credit enhancement, and optimizing the asset-liability structure of enterprises [2][3] Group 3 - The ABS model serves as a funding engine for the green transformation of ports, supporting investments in smart upgrades, clean energy equipment, and environmental facilities, thus promoting infrastructure enhancement and achieving dual carbon goals [2][3] - By directing funds into projects that meet green standards, ABS encourages social capital to flow into low-carbon technology research and development and new energy applications, fostering a sustainable development ecosystem [3] Group 4 - Challenges in practical applications include the quality of underlying assets and risk assessment, necessitating a unified evaluation system and improved internal management to enhance the resilience of cash flows [3][4] - The current green finance support policy framework is incomplete, leading to challenges in regulatory coordination and compliance, which calls for the establishment of specialized guidelines for green port ABS [4][5] - There is a lack of market awareness and investor education regarding innovative financial products, which can be addressed through industry seminars and training to cultivate a long-term investor base [4][5] Group 5 - Green port revenue rights ABS represents a sustainable financing solution that optimizes resource allocation and promotes regional economic development, despite facing challenges related to asset risks and policy environments [5] - Future breakthroughs in green port ABS may include leveraging blockchain technology for transparency, exploring links with carbon financial tools, and expanding applications to inland and free trade zone ports [5]

Market Overview - The bond market experienced a slight increase last week (June 16-20, 2025), with the China Bond Composite Wealth Index (CBA00201) rising by 0.25% and the China Bond Composite Full Price Index (CBA00203) increasing by 0.19% [2][12] - Interest rates on government bonds decreased, with the short-term rates declining more than the long-term rates, while credit bond yields generally fell, leading to a narrowing of credit spreads [2][12] Market Dynamics - The funding environment was unexpectedly loose, with strong demand for short-term bonds; coupon-bearing assets continued to be favored, resulting in ongoing compression of credit spreads [2][13] - The Federal Reserve maintained its current interest rate stance, while geopolitical risks heightened demand for U.S. Treasury bonds [2][14] REITs Market Development - On June 18, 2025, the China Securities Regulatory Commission approved the first two data center REITs, marking a significant expansion in the REITs market [2][15][16] - The REITs market maintained an upward trend, with the CSI REITs Total Return Index rising by 0.9% last week, driven by the expansion of the primary market and the continued demand for rental housing REITs [2][15] Public Fund Market Trends - The approval of the first data center REITs is expected to accelerate the issuance of REITs, further enriching the types of underlying assets in the market [2][16] - As of June 20, 2025, nine new REITs have been issued this year, supported by policy incentives and rapid expansion [2][18] Fund Performance Tracking - Short-term bond funds rose by 0.05% last week, with a cumulative return of 3.93% since inception [3][21] - Long-term bond funds increased by 0.17%, achieving a cumulative return of 6.53% since inception [4][21] - REITs funds surged by 2.55%, with a cumulative return of 43.01% since inception, indicating strong performance in this asset class [10][21]

1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoints of the Report - From June 16 - 20, 2025, the China Securities REITs Total Return Index closed at 1124.63 points, up 0.88% week - on - week, with the market rising for seven consecutive weeks since April 30, 2025. The China Securities REITs (Closing) Index closed at 893.99 points, up 0.87% week - on - week. The total market value of China's REITs market reached 206.6 billion yuan, up 1.21% month - on - month after exceeding 200 billion yuan in early June, mainly driven by the rental housing and warehousing logistics sectors [1][8]. - In terms of major asset classes, the transportation infrastructure sector of REITs declined this week, while other assets rose, outperforming stocks, bonds, and futures [1][8]. 3. Summary by Related Catalogs 3.1 Secondary Market 3.1.1 Price - Among the seven REITs sectors this week, the highway sector fell 1.10%, while other asset types had positive growth. The rental housing sector led with a 4.41% increase, and REITs with expansion plans continued to be favored. The municipal environmental protection sector rose 3.27%, ranking second, mainly driven by the 8.10% increase of the Guotai Junan Jinan Energy Heating REIT [13]. 3.1.2 Liquidity - The overall market trading remained highly active this week, with an average daily trading volume of 569 million yuan, an average daily trading volume of 118 million shares, and an average daily turnover rate of 0.60%, up 3.80%, - 0.79%, and 0 pct respectively week - on - week [21]. - The sectors with the highest average daily turnover rates this week were rental housing (0.85%), municipal environmental protection (0.83%), and energy facilities (0.78%). The high trading activity in the consumer facilities sector this week was mainly driven by the Huaan Bailian Consumer REIT [24]. 3.1.3 Valuation - The rental housing sector's valuation yield is currently at a historical low, with a relatively consistent valuation among projects, averaging 2.67%. The consumer sector REITs are still in a high - valuation state, with the ChinaBond valuation yield of the Jiashi Wumei project turning negative. The valuations of the industrial park infrastructure, municipal environmental protection, transportation infrastructure, and warehousing logistics sectors are more differentiated [29]. 3.2 Primary Market 3.2.1 Initial Offerings - Since 2025, 8 projects have been listed, raising 13.4 billion yuan. As of June 20, 2025, there are about 12 - 15 potential issuance projects this year, with an expected total issuance scale of over 20 billion yuan, and the market total scale is expected to exceed 220 billion yuan [3][37]. - Four REITs were approved this week. On June 18, the 2025 Lujiazui Forum announced that the CSRC would approve the registration of the first two data center REITs in the country. On June 19, the Huaxia Huadian Clean Energy REIT and the Chuangjin Hexin Shounong Industrial Park REIT were also officially approved [3][39]. 3.2.2 Other News This Week - Multiple cultural and tourism public REITs projects were launched. On June 12, a tender was issued for the Qingcheng Mountain - Dujiangyan Scenic Area Infrastructure REITs project. The Lijiang Tourism Development Investment Group Co., Ltd. announced a tender to issue cultural and tourism infrastructure public REITs based on the Yulong Snow Mountain, with an intended issuance scale of no less than 2.5 billion yuan [50].

Core Insights - The REITs market in China has rapidly developed over the past four years, with a total issuance scale exceeding 180 billion yuan and a market capitalization surpassing 200 billion yuan, making it the largest in Asia [1][2][6] - The Shanghai Stock Exchange (SSE) has become the leading platform for REITs, with 44 listed products and a market value of approximately 137 billion yuan, accounting for about 70% of the total market [1][3][6] - The market has experienced a complete cycle, transitioning from initial enthusiasm to a more rational focus on asset value, aided by a market-driven pricing mechanism [3][6] Market Development - The SSE has established a robust ecosystem for REITs, focusing on market-oriented pricing and continuous improvement of institutional frameworks, which has facilitated high-quality development [2][11] - The market has seen a significant increase in the number of REITs, with 66 products currently listed, and ongoing expansion efforts are expected to further enrich the product offerings [8][10][15] - The introduction of innovative products such as REITs index funds and ETFs is anticipated to enhance market liquidity and attract more investment [7][8] Performance Metrics - The REITs market has demonstrated strong performance, with an average price increase of approximately 30% since issuance, and some projects have seen price increases exceeding 90% [5][6] - The total dividends distributed by the REITs in the SSE have reached 15.1 billion yuan, with a dividend yield of 5.7% based on year-end market capitalization [6][7] - The secondary market has shown an average price increase of about 14%, with certain sectors like municipal water conservancy and housing showing exceptional performance [7] Investor Engagement - The REITs market has attracted a diverse range of investors, including insurance companies, brokerage firms, and private equity funds, leading to a more varied investment strategy landscape [7][8] - The SSE has actively facilitated communication between investors and REITs project sponsors through various events, enhancing investor understanding and engagement [12][11] Future Outlook - The REITs market is expected to continue expanding, with 21 projects currently under review or awaiting issuance, primarily on the SSE, which will enhance market depth and capacity [8][10] - The ongoing development of a multi-tiered REITs market is anticipated to provide a broader range of investment options and improve resource allocation efficiency [14][15]

Financial Collaboration - Shanghai and Hong Kong signed the "Action Plan for Collaborative Development of International Financial Centers," focusing on 38 measures to enhance financial market connectivity and cross-border financial services innovation [1] - The plan prioritizes optimizing the Bond Connect and Swap Connect mechanisms, aiming to establish Shanghai and Hong Kong as global centers for RMB asset allocation and risk management [1] Macro Dynamics - The People's Bank of China announced the establishment of an interbank market trading report database to collect and analyze trading data across various financial sub-markets [2] - The China Securities Regulatory Commission emphasized strengthening the linkage between stocks and bonds to support technological innovation, promoting the development of technology innovation bonds and related financial products [3][4] Green Finance Initiatives - The People's Bank of China plans to pilot green foreign debt policies to encourage eligible enterprises to utilize foreign debt for green projects [6] Regional Financial Developments - The Ministry of Finance allocated a new local government debt limit of 2,334 billion yuan for Henan Province in 2025, with specific limits for general and special debts [8] - Shanghai plans to issue 68 billion yuan in special bonds for urban infrastructure projects [9] Financial Market Updates - The financial situation in Henan Province showed a loan balance of 92,521.6 billion yuan as of the end of May, reflecting a year-on-year growth of 6.5% [10] - The Hainan branch of the People's Bank of China is supporting local banks in issuing technology innovation financial bonds [12] Bond Issuance Activities - The Zhumadian Urban Construction Investment Group completed the issuance of 3.71 billion yuan in renewable corporate bonds with an interest rate of 2.57% [14] - The Henan Zhongyuan Expressway Company is in the process of registering a public bond issuance of up to 40 billion yuan [13] Market Sentiment - The market sentiment indicates a noticeable supportive attitude from the central bank, with discussions around the potential resumption of bond purchases and the inclusion of short-term government bonds in reserve requirements [19]

Core Viewpoint - The approval of the first public REITs for data centers in China marks a significant expansion of the underlying assets in the public REITs market, filling a gap in the data center sector and injecting new vitality into the capital market [2][5]. Group 1: REITs Details - The "Southern Runze Technology Data Center Closed-End Infrastructure Securities Investment Fund" has a total fundraising quota of 800 million shares and a fund contract duration of 38 years [3]. - The "Southern Wanguo Data Center Closed-End Infrastructure Securities Investment Fund" has a total fundraising quota of 1 billion shares and a fund contract duration of 50 years [3]. - Both funds are managed by Southern Fund, with China Merchants Bank as the custodian and Huatai United Securities as the exclusive financial advisor [3]. Group 2: Underlying Assets - The Southern Runze Technology REIT is based on the International Information Cloud Aggregation Port (ICFZ) A-18 data center project located in Langfang Economic Development Zone, Hebei Province, which has shown excellent operational efficiency and high cabinet occupancy rates [3]. - The Southern Wanguo Data Center REIT is based on the Kunshan Guojin Data Cloud Computing Data Center project, which has maintained stable operational conditions and high infrastructure asset billing rates since its launch [4]. Group 3: Industry Impact - The launch of these two products is expected to activate high-quality existing assets efficiently and open new capital circulation channels for the data center industry, potentially attracting more capital to focus on this sector [5]. - The approval aligns with the regulatory support for asset securitization in new infrastructure sectors, including artificial intelligence and data centers, promoting the revitalization of existing assets [6].