Core Viewpoint - The public REITs market in China is experiencing significant growth, with increasing participation from fund managers and a diverse range of underlying assets, indicating a promising future for the sector [1][4][7]. Group 1: New Entrants and Fund Management - Huaneng International plans to issue infrastructure public REITs through its subsidiary, with Changcheng Fund as the fund manager, marking the entry of another player into the public REITs space [2][3]. - As of June 6, 2023, there are 27 fund managers involved in public REITs, with over 80 products launched, showcasing a growing interest in this investment vehicle [1][4]. Group 2: Market Performance and Valuation - The total market capitalization of listed public REITs has surpassed 200 billion yuan, with 66 products achieving this status, reflecting a significant milestone in market maturity [5][6]. - The average return for public REITs has reached 19.34% year-to-date, with several funds exceeding 30% returns, indicating strong performance in the sector [6][7]. Group 3: Future Development and Challenges - The public REITs market is expected to expand further, driven by improvements in market efficiency, asset diversity, and investor awareness [7]. - Challenges remain, including the need for better liquidity, comprehensive tax policies, and legal frameworks to support the growth of REITs in China [8].

Core Viewpoint - The public REITs market experienced fluctuations last week, with a mixed performance across different sectors, indicating a stable yet cautious investment environment [1][2]. Market Performance - As of May 30, the CSI REITs Index decreased by 0.10% to 868.4 points, while the CSI REITs Total Return Index increased by 0.03% to 1090.1 points [1][2]. - Among the REITs, operating rights REITs outperformed property rights REITs, with average weekly changes of -0.3% and 0.6% respectively [1]. Product Performance - Out of 66 listed public REITs, 31 saw a week-on-week increase, while 35 experienced declines [1][3]. - The top three performing products were: - Huaxia Tebian Electric New Energy REIT, up 4.26% - ICBC Mengneng Clean Energy REIT, up 4.04% - Huaxia Jinmao Commercial REIT, up 3.59% [1][3]. Sector Analysis - The transportation and energy REITs performed well, while consumer and industrial park REITs showed relatively weaker performance [2]. - Weekly performance by asset type ranked as follows: - Transportation: 0.67% - Energy: 0.60% - Affordable housing: 0.27% - Municipal environmental protection: -0.34% - Warehousing: -0.48% - Consumer: -0.53% - Industrial park: -0.80% [2]. New Projects and Approvals - Two new projects were approved: - Bank of China and China Foreign Transport Warehouse Logistics REIT - Guotai Junan Lingang Innovation Manufacturing Industrial Park REIT [8][9]. - The Bank of China project is notable as the first central enterprise warehouse logistics REIT in China, with a total leaseable area of approximately 300,000 square meters across six locations [9]. - The Guotai Junan project aims to acquire infrastructure assets in the Lingang area, covering an area of 182,400 square meters [9]. Market Activity - The public REITs market had a trading volume of 2.38 billion yuan last week, with the affordable rental housing REITs leading in average turnover rate [6]. - The top three REITs by trading volume were: - Huaxia Hefei High-tech REIT - Huatai Suzhou Hengtai Rental Housing REIT - Hongtu Innovation Yantian Port REIT [6]. Future Outlook - As of last week, there are 14 REITs waiting to be listed, indicating an active issuance market [11].

Core Viewpoint - The approval and registration of the CICC China Green Development Commercial Asset Closed-End Infrastructure Securities Investment Fund marks the launch of the ninth consumer REIT in China, focusing on the Jinan Lingxiucheng Guihe Shopping Center as its underlying asset [1][2]. Group 1: Project Overview - The underlying asset, Jinan Lingxiucheng Guihe Shopping Center, is the largest single commercial project in southern Jinan, with a total construction area of approximately 200,900 square meters [2]. - The shopping center is strategically located near major transportation hubs, enhancing its accessibility and potential customer base, with a resident population of 475,500 within a 3-kilometer radius [2]. Group 2: Financial Performance - The projected net operating income (NOI) for the Jinan Lingxiucheng Guihe Shopping Center in 2024 is estimated to be 95.261 million yuan [3]. Group 3: Market Positioning and Strategy - The shopping center benefits from a stable consumer base, strong local market presence, and the backing of a state-owned enterprise, which provides confidence in its selection as the initial asset for the REIT [2]. - The management emphasizes the importance of diversifying customer traffic and enhancing profitability through innovative operational strategies, including green and intelligent initiatives [4][5]. Group 4: Future Plans and Expansion - The original equity holder aims to utilize public REITs to enhance asset management capabilities and support the national strategy of expanding domestic demand and boosting consumer confidence [6]. - Future plans include the potential inclusion of additional quality assets into the REIT platform, with a focus on creating a robust commercial asset management system [7].

Investment Rating - The report does not provide a specific investment rating for the REITs industry [2] Core Insights - The REITs index experienced a slight increase of 0.03% this week, contrasting with a 1.08% decline in the Shanghai and Shenzhen 300 index [4][13] - The total market capitalization of the REITs industry is approximately 198.2 billion yuan, with a circulating market value of about 92.0 billion yuan [2] - Recent approvals include two new REIT projects: Zhongyin Zhongwaiyun Warehousing Logistics REIT and Guotai Junan Lingang Innovation Manufacturing Industrial Park REIT [6][9] - The trading volume for REITs decreased by 20.2% this week, totaling 2.38 billion yuan, with an average daily turnover rate of 0.5% [40] Summary by Sections Market Performance - The REITs index rose by 0.03%, while the Shanghai and Shenzhen 300 index fell by 1.08% [13] - 28 REITs saw price increases, 0 remained stable, and 38 experienced declines, with the largest gain being 5.07% for the招商高速 REIT and the largest loss being 4.22% for the 华夏合肥高新 REIT [17] Trading Activity - The trading activity for REITs decreased, with a total trading amount of 2.38 billion yuan, down 20.2% from the previous week [40] - Specific sectors such as highways and ecological protection saw significant declines in trading volumes, with highway REITs trading at 600 million yuan, down 23.0% [40] Project Approvals and Announcements - Recent approvals include the Zhongyin Zhongwaiyun Warehousing Logistics REIT and the Guotai Junan Lingang Innovation Manufacturing Industrial Park REIT [6][9] - Several REITs announced dividend distributions, including 华夏合肥高新产园 REIT and 中航易商仓储物流 REIT [9][12] Valuation Situation - The estimated yield for various REITs ranges from -1.95% to 10.80%, with the highest yield observed in 华夏中国交建 REIT at 10.80% [42] - The P/NAV ratio for REITs varies between 0.75 and 1.79, indicating differing valuation levels across the sector [42]

Report Summary 1. Investment Rating No investment rating for the industry is provided in the report. 2. Core Viewpoints - This week, the China Securities REITs Index declined slightly. Concession - type REITs outperformed property - type REITs, with average weekly price changes of - 0.3% and + 0.6% respectively. The order of weekly price changes of major indices is: China Securities Convertible Bond Index > China Securities All - Bond Index > China Securities REITs Index > CSI 300 Index. The average daily turnover rate of REITs decreased slightly compared to the previous week. Energy, transportation, and consumer - type REITs in the entire market rose, while water conservancy and park - type REITs fell. As of May 30, the average annualized cash distribution rate of public - offering REITs was 6.0%, higher than the current static yields of mainstream fixed - income assets. The dividend yield of property - type REITs was 313 basis points lower than the average dividend yield of CSI Dividend stocks, and the spread between the average internal rate of return of concession - type REITs and the 10 - year Treasury bond yield was 212 basis points [1]. 3. Summary by Directory Market Trends - **Overall Index Performance**: As of May 30, 2025, the closing price of the China Securities REITs (closing) Index was 868.35 points, with a weekly change of - 0.1%, outperforming the CSI 300 Index (- 1.1%) but underperforming the China Securities Convertible Bond Index (+ 0.2%) and the China Securities All - Bond Index (- 0.01%). Since the beginning of the year, the order of price changes of major indices is: China Securities REITs Index (+ 10.0%) > China Securities Convertible Bond Index (+ 3.6%) > China Securities All - Bond Index (+ 0.5%) > CSI 300 Index (- 2.4%). The return rate of the China Securities REITs Index in the past year was 9.1%, with a volatility of 6.9%. The return rate was higher than that of the CSI 300 Index, the China Securities Convertible Bond Index, and the China Securities All - Bond Index, and the volatility was lower than that of the CSI 300 Index and the China Securities Convertible Bond Index but higher than that of the China Securities All - Bond Index. The total market value of REITs decreased to 198.2 billion yuan on May 30, a decrease of 200 million yuan from the previous week. The average daily turnover rate for the whole week was 0.56%, a decrease of 0.15 percentage points from the previous week [2]. - **Differentiated Performance of Different Types of REITs**: - **By Project Attribute**: The average weekly price changes of property - type REITs and concession - type REITs were - 0.3% and + 0.6% respectively [1][3]. - **By Project Type**: The weekly price changes were differentiated. The top three project types with the largest average increases were energy (1.0%), transportation (0.5%), and consumer - type (0.1%). The top three REITs in terms of weekly gains were Huaxia TBEA New Energy REIT (+ 4.26%), ICBC Mengneng Clean Energy REIT (+ 4.04%), and Huaxia JINMAO Commercial REIT (+ 3.59%) [3]. - **Trading Activity**: Affordable housing REITs had the highest trading activity. The affordable housing - type had an average daily turnover rate of 0.9% during the period, accounting for 14.9% of the total REITs trading volume. The transportation infrastructure - type had an average daily turnover rate of 0.5%, accounting for 25.2% of the total REITs trading volume. The top three REITs in terms of net inflow of main funds were CICC Anhui Expressway REIT (7.48 million yuan), Guotai Junan Lingang Innovation Industrial Park REIT (6.82 million yuan), and Huatai Jiangsu Expressway REIT (5.31 million yuan) [3]. Primary Market Issuance As of May 30, 2025, there was 1 REIT product in the declared stage, 1 in the in - inquiry stage, 1 in the accepted stage, 7 in the feedback stage, 5 in the passed - and - awaiting - listing stage, and 3 first - issued products that had passed and were listed on the exchange [24]. Valuation Tracking - **Bond - like Aspect**: As of May 30, the average annualized cash distribution rate of public - offering REITs was 6.0%, significantly higher than the current static yields of mainstream fixed - income assets [26]. - **Equity - like Aspect**: The valuation of REITs is judged through relative net - value premium/discount rate, IRR, and P/FFO. The relative net - value premium/discount rate reflects the relationship between the market value and the fair value of the fund, similar to the PB indicator of stocks. IRR is the internal rate of return calculated using the discounted cash - flow method. P/FFO is the current price divided by the cash flow generated from operations. Different project types have different valuation indicators. Additionally, as of May 30, 2025, the dividend yield of property - type REITs was 313 basis points lower than the average dividend yield of CSI Dividend stocks, and the spread between the average internal rate of return of concession - type REITs and the 10 - year Treasury bond yield was 212 basis points [26][27]. Industry News - CICC Yizhuang Industrial Park REIT launched the price - inquiry process. The initial strategic placement of fund shares was 280 million, accounting for 70% of the total issued shares. The original equity holder or its affiliated party under the same control planned to subscribe for 100 million shares, accounting for 25% of the total issued shares, and other strategic investors planned to subscribe for 180 million shares, accounting for 45% of the total issued shares. The initial number of fund shares for offline sales was 84 million, accounting for 21% of the total issued shares, and the initial number of fund shares for public investors' subscription was 36 million, accounting for 9% of the total issued shares. The price - inquiry period was from June 5, 2025, with an inquiry range of 2.257 - 2.758 yuan per share [33]. - On May 28, Huaneng International announced that it planned to apply for the issuance of infrastructure public - offering REITs with the Huaneng Qingdao project held by Qingdao Thermal Power as the underlying asset. In 2024, Qingdao Thermal Power achieved a power generation of 3.4 billion kilowatt - hours and a heat supply of 5.1 million gigajoules, with year - on - year increases of 6.2% and 49% respectively [33]. - On May 30, BOC Sinotrans Warehouse Logistics REIT obtained the registration approval from the CSRC and the no - objection letter from the Shanghai Stock Exchange. It is a state - owned enterprise - controlled warehouse logistics infrastructure REITs project and the 5th REITs product under the China Merchants Group. Its first - issued assets focus on important logistics nodes in the Yangtze River Delta, Beijing - Tianjin - Hebei, and Sichuan - Chongqing regions, with a total construction area of 305,400 square meters, a rental rate of 95.59%, and a project valuation of 1.097 billion yuan as of December 31, 2024 [33].

Core Viewpoint - The article discusses the growth and significance of the REITs market in China, particularly focusing on the strategic importance of the first market-oriented rental housing REIT issued by China Resources, which has attracted significant investor attention since its launch [1][2]. Group 1: Strategic Importance of REITs - The issuance of REITs by China Resources has restructured its rental housing business model, allowing for stable operations and accelerated capital turnover, which benefits resource allocation within the company [4]. - The REITs are seen as a crucial part of China Resources' broader asset management strategy, linking investment, financing, construction, management, and exit in a closed capital loop [4][6]. Group 2: Future Trends in Rental Housing Industry - The rental housing industry in China is expected to experience three major trends: 1. Policy-driven standardization and transparency, benefiting market-oriented institutions [5]. 2. Structural growth in demand, particularly in first- and second-tier cities due to urbanization and an increasing rental ratio among new citizens and youth [5]. 3. Enhanced operational precision and segmentation, with leading companies focusing on brand operation and digital management in niche markets [5][6]. Group 3: Shanghai Rental Housing Market - The acceleration of rental housing supply in Shanghai aims to alleviate housing pressure for new citizens and youth, fostering long-term talent retention and macroeconomic development [6]. - Professional rental housing companies are expected to have increased opportunities in the market due to significant supply and demand dynamics in core cities like Shanghai [6]. Group 4: Expectations for the C-REITs Market - The release of Document 1014 marks a new phase of standardized and normalized development for the C-REITs market, expanding the scope of rental housing included in REIT issuance [7]. - The market for rental housing REITs is anticipated to grow significantly, with the potential for substantial market capitalization similar to developed markets, where apartment REITs have reached over $100 billion [7][8].

Core Viewpoint - New Huangpu reported a decline in revenue for 2024 but a significant increase in net profit, primarily due to asset sales and strategic acquisitions [2][4]. Financial Performance - In 2024, New Huangpu achieved operating revenue of 2.922 billion yuan, a year-on-year decrease of 4.38% [2]. - The net profit attributable to shareholders was 81.7085 million yuan, reflecting a year-on-year increase of 31.60% [2]. - For Q1 2024, the company reported operating revenue of 277.8 million yuan, a year-on-year increase of 28.07% [2]. - The net profit for Q1 2024 was 77.5857 million yuan, showing a remarkable year-on-year increase of 2123.13% [2]. Strategic Moves - The increase in net profit for Q1 2024 is attributed to the transfer of a 10% stake in Shanghai Weixing Housing Rental Operation Co., generating approximately 170 million yuan, with expected net gains of 50 to 70 million yuan [4]. - New Huangpu is actively expanding its business through acquisitions, including a project in Beijing for 215 million yuan, which will be integrated into the city's affordable housing system [5]. - The company is also focusing on the rental housing market, having established the "Zhu Meng Cheng" brand for its rental projects [5]. Business Focus - New Huangpu's main revenue sources include real estate sales, property management, real estate leasing, and financial services, with approximately 80% of revenue coming from real estate sales [4][5]. - The company is optimizing its "dual-driven" development strategy, aiming to strengthen its core real estate business while enhancing its financial services [6].

Core Viewpoint - The new housing policy "Han Jiu Tiao" in Wuhan focuses on "expanding demand" and "stabilizing supply" through adjustments in housing finance, tax incentives, and market supply, forming a comprehensive policy approach [1][4]. Group 1: Market Trends - In the first four months of this year, the transaction area of commercial residential properties in Wuhan (excluding affordable housing) reached 1.841 million square meters, a slight year-on-year increase of 0.8%, while the supply area was 1.749 million square meters, showing a year-on-year decrease of 12.2% [1]. - A report from DTZ indicates a recovery trend in overall demand in Wuhan's commercial residential market, with a significant slowdown in market supply, suggesting that the supply-demand imbalance will continue to ease [2]. Group 2: Supply and Demand Dynamics - With the continuous decline in new housing starts and completion areas, the supply side is slowing down, while demand is improving. The supply-demand ratio in developed second-tier cities, including Wuhan, has decreased from 0.81 in 2024 to 0.71 in the first quarter of this year [4]. - Over 80% of the 24 major cities have seen a reduction in inventory clearance cycles, indicating a gradual alleviation of supply-demand conflicts [4]. Group 3: Policy Measures - To solidify the recovery of the housing market, real estate policies are expected to maintain a loose orientation through 2025, with various government departments launching a series of policy measures aimed at stabilizing the market [4]. - Wuhan's response to the policy loosening includes the issuance of the "Notice on Continuously Consolidating the Stability of the Real Estate Market" by multiple departments, which emphasizes the dual focus on expanding demand and stabilizing supply [4]. Group 4: Housing Supply and Urbanization - As urbanization slows and the growth rate of new populations declines, the real estate market is returning to its residential attributes, emphasizing a "dual-track" approach of renting and purchasing to meet diverse needs [5]. - Increasing the supply of affordable rental housing is a key measure to alleviate housing pressure for new citizens and young people, facilitating their integration into urban areas [5]. - The inclusion of affordable rental housing in public REITs has effectively supplemented project funding, providing strong momentum for the affordable rental housing market and creating a complete investment loop [5].

Group 1 - The fund's secondary market closing price reached 4.178 CNY per share on May 23, 2025, marking a 52.82% increase from the benchmark price of 2.734 CNY per share [1] - The fund will suspend trading for one hour starting from May 26, 2025, to protect the interests of fund shareholders, with trading resuming at 10:30 AM on the same day [1] - The fund's initial investment is in a public rental housing project located in Suzhou, Jiangsu Province, aiming to generate stable cash flow through active management [1][2] Group 2 - The fund's operational management is confirmed to be stable, with no undisclosed significant information affecting the fund [2][3] - The predicted annual distributable cash flow for 2025 is 54,678,152.94 CNY, with a projected net cash distribution rate of 4.00% for investors who bought at the initial price and 2.62% for those who bought at the market price on May 23, 2025 [4][5] Group 3 - The fund's A and C class shares have different subscription fees, with C class shares having no subscription fee [12][13] - The fund will not accept subscription applications from individual investors if their holdings exceed 50% of the total fund shares to protect existing investors [12] - The fund's net asset value will be calculated daily and announced accordingly [22][23]

Core 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].