1. Report Industry Investment Rating The provided content does not mention the industry investment rating. 2. Core Views of the Report - After five - year development, the pilot program for commercial real - estate investment trusts (REITs) is officially launched. On November 28, 2025, the China Securities Regulatory Commission (CSRC) released a draft for public comment, planning to introduce a new product of "commercial real - estate REITs" outside of "infrastructure REITs", including commercial complexes, commercial retail, office buildings, hotels and other commercial properties [3]. - The announcement emphasizes that fund managers should actively perform the operation and management duties of commercial real estate. This is expected to shift the domestic commercial real - estate from a development - oriented to an operation - oriented model and make the institutional arrangement closer to that of mature international REITs markets [3]. - There may be marginal changes in the REITs review process, accelerating the product expansion. The notice is issued solely by the CSRC without mentioning the National Development and Reform Commission (NDRC) recommendation mechanism for now, which may simplify the review chain of commercial real - estate REITs [3]. - The launch of commercial real - estate REITs provides a market - based financing and exit channel for real - estate enterprises and local state - owned enterprises holding high - quality commercial properties, alleviating their liquidity pressure and supporting the construction of a new real - estate development model [3]. 3. Summary According to the Directory 3.1 Primary Market: Three Newly Issued Public REITs Made Progress - As of November 28, 2025, 19 REITs have been successfully issued this year, with a total issuance scale of 38.79 billion yuan, a year - on - year decrease of 24.1%. Three newly issued public REITs made progress this week: Dongfanghong Tunnel Expressway REIT was accepted, with the underlying asset being the Qianjiang Tunnel in Zhejiang; Ping An Xi'an Hi - tech Industrial Park REIT was declared; and AVIC Zhonghe Energy REIT was accepted [3]. - The current approval process includes 11 declared REITs, 2 that have been questioned and responded, 1 that has passed the review, and 1 that has been registered and is awaiting listing. For the expansion of existing REITs, 5 have been declared, 3 have been questioned and responded, and 3 have passed the review [3]. 3.2 Secondary Market: Liquidity Rebounded This Week 3.2.1 Market Review: The CSI REITs Total Return Index Declined by 0.08% - As of November 28, 2025, the CSI REITs Total Return Index closed at 1040.34 points, a decline of 0.08% this week. It underperformed the CSI 300 by 1.72 percentage points and outperformed the CSI Dividend Index by 0.08 percentage points. The year - to - date increase of the CSI REITs Total Return Index was 7.49%, underperforming the CSI 300 by 7.55 percentage points and outperforming the CSI Dividend Index by 8.13 percentage points [4]. - By project attribute, equity - type REITs fell 0.02% and concession - type REITs fell 0.43% this week. By asset type, the data center (+1.84%), affordable housing (+0.77%), consumption (-0.13%), and warehousing and logistics (-0.30%) sectors performed well [4]. - Among individual bonds, 34 rose and 42 fell this week. CICC Xiamen Anju REIT (+3.65%), Huaxia Capital First - Choice Outlets REIT (+2.67%), and Huaxia Beijing Affordable Housing REIT (+2.52%) were the top three, while Huatai Nanjing Jianye REIT (-5.92%), CICC Chongqing Liangjiang REIT (-4.55%), and China Merchants Expressway REIT (-4.41%) were the bottom three [4]. 3.2.2 Liquidity: The Liquidity of the Affordable Housing Sector Increased Significantly - The average daily turnover rates of equity - type and concession - type REITs this week were 0.51% and 0.47% respectively, an increase of 7.22 and 2.49 basis points compared to last week. The trading volumes this week were 490 million and 157 million shares respectively, a week - on - week increase of 16.59% and 15.38% [4]. - The affordable housing sector had the highest activity, with an average daily turnover rate of 1.11% this week, an increase of 34.61 basis points compared to last week, and a trading volume of 154 million shares, a week - on - week increase of 45.71% [27]. 3.2.3 Valuation: The Affordable Housing Sector Had a Higher Valuation - According to the ChinaBond valuation yield, the yields of equity - type and concession - type REITs were 3.95% and 4.17% respectively. The warehousing and logistics (5.55%), transportation (5.03%), and park (4.75%) sectors ranked among the top three [4]. 3.3 This Week's News and Important Announcements 3.3.1 This Week's News - On November 25, 2025, the infrastructure REITs fund manager public project tender announcement of Nanjiang Energy Group was released. - On November 26, 2025, the winning candidate for the Lanzhou Thermal Power Group's public REITs project was announced. - On November 27, 2025, the NDRC stated that it was actively promoting the expansion of infrastructure REITs to more industries and asset types such as urban renewal facilities, hotels, sports stadiums, and commercial office facilities. - On November 28, 2025, the CSRC drafted the "Announcement on the Pilot Program of Commercial Real - Estate Investment Trust Funds (Draft for Public Comment)" [35]. 3.3.2 Important Announcements - Many REITs released announcements this week, including operation data announcements, share unlocking announcements, and dividend announcements. For example, Guojin China Railway Construction REIT released its operation data for October 2025; Huaxia Fund China Resources Youchao REIT announced the unlocking of strategic placement shares; and Huaxia Beijing Affordable Housing REIT announced a dividend plan [35][36].

Core Viewpoint - The announcement of the pilot program for Commercial Real Estate Investment Trusts (REITs) marks a significant innovation in China's capital market, aiming to connect commercial real estate with the capital market and provide standardized solutions for revitalizing trillions of yuan in existing assets [3][4]. Group 1: Pilot Program Overview - The pilot program is a key transition from infrastructure REITs to commercial real estate, aligning with the new "National Nine Articles" to promote high-quality development of the REITs market [3]. - The program aims to provide a new equity financing channel for the commercial real estate sector and transform the operational model of real estate development [3][6]. Group 2: Institutional Design - The pilot program features a comprehensive institutional design that establishes a market-oriented and standardized operational system, emphasizing the active management of REITs [4][5]. - The definition of commercial real estate REITs highlights their equity nature and the requirement for professional management to create value through operations [4]. - The program sets clear asset quality standards, ensuring that only properties with stable cash flows and clear ownership can be included [4]. Group 3: Market Impact - The introduction of commercial real estate REITs is expected to unlock dormant assets in prime urban areas, providing a new financing avenue for companies holding substantial commercial properties [6][7]. - REITs will shift the operational logic of commercial real estate from a focus on sales to a focus on management, enhancing property value through improved operational capabilities [7]. - The REITs model is anticipated to inject new vitality into the capital market, appealing to long-term investors such as insurance funds and pension funds due to its stable returns [7][8]. Group 4: Future Development and Opportunities - The development of commercial real estate REITs is based on five years of experience with infrastructure REITs, following a path from infrastructure to commercial real estate [8]. - The market is prepared for implementation, with exchanges revising rules and fund companies forming specialized teams [8]. - Successful implementation of the pilot program will require supportive policies, including tax and state-owned asset transfer regulations, to create a conducive environment for REITs [9].

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has announced a pilot program for commercial real estate investment trusts (REITs), aiming to enrich capital market investment tools and support a new model for real estate development, enhancing the effectiveness of multi-level capital markets in serving the real economy [1][2][3]. Group 1: Regulatory Framework - The announcement outlines the registration and operational management requirements for commercial real estate REITs, including responsibilities of fund managers and professional institutions [1]. - Fund managers must conduct comprehensive due diligence on the commercial real estate to be held, ensuring compliance with national strategies and policies, and that the properties generate stable cash flows [2]. - Regulatory bodies are tasked with monitoring and managing risks associated with commercial real estate REITs, with self-regulatory responsibilities assigned to various associations [2]. Group 2: Market Development - The REITs market has developed steadily over the past five years, with 77 listed REITs raising a total of 207 billion yuan and a total market capitalization of 220.1 billion yuan as of November 27 [3]. - The China Securities Index REITs total return index has increased by 22.46% since the beginning of 2024, indicating that REITs are becoming an important asset class for investment [3]. - The CSRC emphasizes the potential of commercial real estate assets, such as shopping centers and office buildings, to be utilized in REITs, reflecting a significant demand for revitalizing existing assets and expanding equity financing channels [3].

Core Viewpoint - The launch of the commercial real estate REITs pilot program marks a significant development in the public REITs market, aimed at enhancing asset liquidity and expanding financing channels for real estate in China [3][5]. Group 1: Market Overview - As of November 27, 77 REITs have been listed, raising a total of 207 billion yuan, with a total market capitalization of 220.1 billion yuan [4]. - The China Securities REITs Total Return Index has increased by 22.46% since the beginning of 2024, indicating that REITs are becoming an important asset class for investment [4]. Group 2: Regulatory Framework - The draft proposal outlines eight key points, including product definitions, fund registration, operational management requirements, and enhanced regulatory responsibilities [3][5]. - Commercial real estate REITs are defined as closed-end publicly raised securities investment funds that hold commercial real estate to generate stable cash flows and distribute profits to fund shareholders [5]. Group 3: Institutional Responsibilities - The draft emphasizes the roles of fund managers and professional institutions, mandating strict adherence to professional standards and regulatory requirements [5]. - Regulatory bodies are tasked with monitoring and managing risks associated with commercial real estate REITs, ensuring compliance with laws and regulations [5].

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has announced the launch of a pilot program for commercial real estate investment trusts (REITs), aiming to enhance the market's functionality and support the development of a new real estate model in China [2][3]. Group 1: Regulatory Framework - The consultation draft consists of eight key points, including product definitions, fund registration, operational management requirements, and enhanced regulatory responsibilities [2][4]. - The draft emphasizes the importance of fund managers and professional institutions in adhering to regulatory standards and fulfilling their responsibilities [4]. Group 2: Market Development - As of November 27, 77 REITs have been listed, raising a total of 207 billion yuan, with a total market capitalization of 220.1 billion yuan [3]. - The CSI REITs total return index has increased by 22.46% since the beginning of 2024, indicating that REITs are becoming a significant asset class for investment [3]. Group 3: Asset Class and Demand - The CSRC highlights that commercial properties such as shopping centers, retail spaces, office buildings, and hotels are crucial underlying assets for REITs, given the substantial existing stock of commercial real estate in China [3]. - There is an inherent demand for revitalizing these assets and broadening equity financing channels through REITs [3].

Core Insights - The current interest rate environment poses challenges for investors, particularly in selecting which business development companies (BDCs) to invest in due to concerns over portfolio health and growth potential [1] Group 1: Investment Strategy - A hybrid investment strategy combining classic dividend growth stocks with BDCs, REITs, and Closed End Funds can enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1]

Core Insights - The equity market serves as a significant mechanism for wealth creation or destruction over the long term through daily price fluctuations [1] Group 1: Investment Focus - Pacifica Yield aims to create long-term wealth by focusing on undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Group 1 - The National Development and Reform Commission (NDRC) is actively promoting infrastructure REITs, expanding to urban renewal facilities, hotels, sports venues, and commercial office facilities [1] - The NDRC aims to enhance collaboration with the China Securities Regulatory Commission (CSRC) to optimize the project application process and improve work efficiency while ensuring risk prevention and quality control [1] - Urban renewal is expected to accelerate, with a focus on various types of old asset revitalization beyond residential updates, including old street renovations and cultural heritage building upgrades [1] Group 2 - The "asset shortage" logic suggests that REITs, characterized by high dividends and medium-low risk, are likely to see increased attractiveness due to enhanced policy support and expectations of social security and pension fund investments [2] - Companies like Everbright Jiabao are cultivating core competencies in commercial asset management and urban renewal projects, primarily in first-tier cities, with a managed fund scale of 21.981 billion and managed asset scale of 47.330 billion [3] - Huayang International is deeply involved in urban renewal projects across multiple cities, including Shenzhen and Guangzhou, and is also expanding into the micro-short drama business with a team of over 100 [3]

Core Viewpoint - The article discusses the financial performance and strategic shifts of GDS Holdings Limited, highlighting the impact of artificial intelligence on the data center industry and the significance of the recent asset injection into China's first Infrastructure REITs [2][5][6]. Financial Performance - In the third quarter, GDS reported revenue of 2.887 billion yuan (approximately 406 million USD), representing a year-on-year growth of 10.2% [4]. - The company recorded a net profit of 729 million yuan, attributed to a termination gain of 1.369 billion yuan from the asset injection into the C-REIT [5]. Industry Trends - The year 2025 is anticipated to be a pivotal moment for China's data center industry, driven by the demand for AI training and inference, alongside the introduction of REITs as a new financial tool [2]. - Despite the strong demand for AI, the company faces challenges with declining negotiation power due to oversupply in the market, leading to a monthly revenue decrease of approximately 3% to 4% [3][5]. Strategic Changes - The asset injection into the REITs has transformed GDS's operational model, allowing for expansion without heavy reliance on debt, which is crucial in a tightening credit environment [6]. - The company's net debt to annualized adjusted EBITDA ratio improved from 6.8 times at the end of 2024 to 6 times by the end of Q3 2025, with an average borrowing cost reduced to 3.3% [6]. Market Position - GDS's business model is highly dependent on power supply, with approximately 900 megawatts of land reserves available for new projects, which is critical given the increasing competition for land and power resources [6]. - The company's price-to-sales ratio (P/S) is around 4.15, lower than that of major competitors like Equinix and Digital Realty, indicating potential for valuation improvement as AI demand remains strong [7]. Future Outlook - GDS's overseas data center platform, DayOne, is expected to contribute to future growth, although it recorded a loss of 461 million yuan in Q3, which may impact overall profitability in the short term [7]. - The stock has seen a 30% increase this year, but a recent 7% pullback suggests a potential opportunity for investors, especially as AI-driven demand continues and REIT asset injections proceed smoothly [7].

REITs Expansion - The National Development and Reform Commission (NDRC) is actively promoting the expansion of infrastructure REITs to include urban renewal facilities, hotels, sports venues, and commercial office facilities [1][3] - Since the launch of public REITs in April 2020, the market has expanded to cover 12 major industries and 52 asset types, with 18 asset types from 10 industries already achieving their first issuance [2][3] "Two Heavy" Construction - The NDRC has allocated 7 trillion yuan and 8 trillion yuan in special long-term bonds for 1,465 and 1,459 "hard investment" projects in 2024 and 2025, respectively [4] - Significant improvements have been made in urban infrastructure, including the construction and renovation of urban underground pipelines, enhancing urban safety and resilience [4] Food Security and Social Welfare - Major irrigation projects are being modernized to create large-scale grain production bases, contributing to food security [5] - Support for the construction and renovation of high schools has resulted in over 1 million new ordinary high school places, improving educational access [5] Credit Repair and Policy Implementation - The NDRC has introduced a Credit Repair Management Measures effective from April 2026, addressing issues in credit repair practices [6] - The measures include categorizing credit information and streamlining the repair process through a unified platform [6] Emerging Industries Development - The NDRC emphasizes the need to balance speed and potential bubbles in the humanoid robot industry, aiming to prevent market saturation and ensure orderly development [7] - The commission plans to establish industry standards and support collaborative efforts among enterprises, universities, and research institutions to address technological challenges [7]