Report Industry Investment Rating The provided content does not mention the industry investment rating. Core Viewpoints of the Report - In June 2025, new policies for public offering REITs expansion were introduced, and the "first issuance + expansion" dual - wheel drive development pattern is expected to be established. The issuance of new REITs accelerated, with a half - year offline subscription yield of 2.54%. The first issuance of the first affordable rental housing REIT expansion was completed, and the predicted distribution rate of Lingang REIT after expansion is expected to increase. The index increase narrowed month - on - month, and the turnover rate continued to decline [3]. Summary by Relevant Catalogs 1. Important News: New Policies for Expansion Business Introduced, Three Types of Expansion Methods Defined - Policy promotion: On June 24, six departments including the central bank jointly issued a guidance to support the issuance of consumption infrastructure REITs. On June 27, the Shanghai Stock Exchange released and implemented new REITs expansion policies, and the Shenzhen Stock Exchange will officially launch the non - directional expansion business function on June 30, with relevant details announced simultaneously [3]. - Market development: On June 5, the total market value of public offering REITs exceeded 200 billion yuan for the first time. The supply side expanded rapidly, and the market's scale and maturity increased. The stable dividend income and equity asset attributes of REITs attracted investors [3][6]. - Project progress: In June, cultural and tourism public offering REITs projects were intensively launched, and the first two data center public offering REITs were approved and started recruitment [6]. 2. First Issuance: Issuance Significantly Accelerated, Half - Year New - Stock Subscription Yield Reached 2.54% - Issuance speed: In June 2025, 5 REITs were issued, and the first two data center REITs started recruitment. From January to June, 10 REITs were issued, raising a total of 17.9 billion yuan [22]. - Offline subscription: In June, an average of 558 placement objects participated in the offline inquiry, with an average initial inquiry subscription multiple of 225 times and an average placement ratio of less than 0.5%. The offline placement ratio of CICC Yizhuang Industrial Park REIT was only 0.38%, a record low [3]. - New - stock subscription yield: From January to June 2025, the offline subscription yield of 100 million yuan of REITs was 2.54%. The first - day trading of CICC Yizhuang Industrial Park REIT and CICC China Greentown Commercial REIT both hit the daily limit [3][42]. - Queuing projects: As of June 30, there were 10 REITs projects in the queuing process [50]. 3. Expansion: First Issuance of the First Affordable Rental Housing REIT Expansion, Predicted Increase in Distribution Rate of Lingang REIT after Expansion - First affordable rental housing REIT expansion: On June 16, 2025, the expansion of Huaxia Beijing Affordable Housing REIT was issued, with an expansion issue price of 4.220 yuan per share, a 9.72% premium compared to the benchmark price and a 5.0% discount compared to the closing price on the issue day [54]. - Lingang REIT prediction: Guojun Lingang Industrial Park REIT is expected to increase its distribution rate to 4.10% in 2025 after expansion. The expansion asset, Kangqiao Project, has high occupancy rates, stable rent growth, and strong customer stickiness [55][58]. - Queuing projects: Currently, 6 REITs expansion projects are in the queuing process, and Bosera Merchants Shekou Industrial Park REIT announced its plan to apply for a second expansion [54]. 4. Trading: Index Increase Narrowed Month - on - Month, Turnover Rate Continued to Decline - Index performance: In June, the China Securities REITs (closing) index and the China Securities REITs total return index increased by 1.1%/1.4% respectively, with a narrowed increase compared to the previous month and underperformed the CSI 300 index. From January to June, they increased by 10.9%/13.6% respectively, outperforming the CSI 300 index and the ChinaBond Treasury Bond Total Wealth (7 - 10 years) index [62]. - Asset performance: In June, 74% of REITs' net values increased, with an average increase of 2.37%. Storage and logistics REITs increased by 20% from January to June. The ecological and environmental protection sector regained its upward trend [63][64]. - Turnover rate: The turnover rate has been declining for 4 consecutive months, dropping to an average of 0.77% in June [69]. - Dividend rate: As of June 30, 2025, the average TTM dividend rates of equity - type and franchise - type REITs were 2.78%/6.21% respectively. There was significant differentiation among franchise - type REITs [75]. - Valuation: For franchise - type REITs, the P/FFO of transportation REITs was at the 70.6% historical percentile on average, and some energy REITs had negative ChinaBond IRRs. For equity - type REITs, the valuation of affordable rental housing REITs reached the top [77][81].

Core Viewpoint - The public REITs market in China is undergoing further standardization with the release of expansion guidelines by both the Shanghai and Shenzhen Stock Exchanges, aiming to enhance operational management and investor returns [1][2][3]. Regulatory Developments - On June 27, both exchanges issued guidelines and notifications regarding the expansion of public REITs, clarifying business processes and details [2]. - The Shanghai Stock Exchange released a guide that specifies three methods for REITs expansion: sales to specific objects, allocation to existing fund holders, and public fundraising [4]. - The Shenzhen Stock Exchange announced that its non-directional expansion functionality would be operational from June 30, allowing for both allocation to existing holders and public sales [5]. Market Performance - As of June 28, the total number of publicly traded REITs reached 68, with a combined market capitalization exceeding 206 billion yuan [8]. - The market has seen strong performance, with at least five REITs hitting the 30% limit on their first trading day, indicating high investor interest [9]. - The China Securities REITs Total Return Index recorded a nearly 15% increase year-to-date, outperforming other asset classes [9]. Future Outlook - Analysts predict that the REITs market could reach a market value of 400 to 500 billion yuan within three years, with the number of listed REITs exceeding 100 [10]. - The potential for domestic infrastructure assets is substantial, with estimates suggesting that the market could surpass one trillion yuan if a conservative securitization rate of 1% to 2% is applied [10].

Core Viewpoint - The successful expansion of the Huaxia Beijing Affordable Housing REIT marks a significant milestone in the domestic REIT market, particularly in the affordable rental housing sector, indicating a growing trend in public REIT expansions in China [1][4][5]. Group 1: REIT Expansion Details - On June 14, Huaxia Fund announced the completion of the expansion of the Huaxia Beijing Affordable Housing REIT, which is the first successful expansion of the second batch of REITs in China [1][4]. - The expansion involved a total issuance of approximately 224 million shares at a price of 4.22 yuan per share, raising approximately 946 million yuan (excluding interest during the fundraising period) [5]. - The newly acquired infrastructure projects include properties located in various districts of Beijing, such as Fangshan, Tongzhou, Daxing, and Haidian [5]. Group 2: Market Trends and Future Prospects - The public REIT market in China has seen a positive cycle of both existing and new assets since the first batch of public REITs was established in June 2021, with several products applying for expansions in 2023 [6][7]. - Other public REITs, such as the CICC Xiamen Affordable Rental Housing REIT and Bosera China Merchants Shekou Industrial Park REIT, have also submitted applications for expansion, indicating a broader trend in the market [6][7]. - Analysts suggest that the expansion of public REITs is driven by increased investment interest from residents and the need for new investment avenues in a low-interest-rate environment [7][8]. Group 3: Financial Innovation and Social Impact - The successful expansion of the Huaxia Beijing Affordable Housing REIT demonstrates the potential of REITs as an innovative financial tool to support major social welfare projects while providing returns to capital markets [5][8]. - The expansion is expected to enhance cash flow reserves for project managers, optimize asset management quality, and ultimately provide better and more stable returns for investors [8].

Core Viewpoint - The acceleration of public REITs expansion is injecting new momentum into the market, establishing a dual-driven model of "initial public offerings + expansions" for the public REITs market, which is expected to enhance liquidity and stabilize market development [2][3][4] Group 1: Market Dynamics - The recent approval of multiple public REITs expansion projects indicates a significant shift in the market, with policies and improved review efficiency contributing to this trend [2][3] - The expansion of public REITs is seen as a crucial mechanism for revitalizing existing assets and broadening long-term funding sources for infrastructure projects [4] Group 2: Specific Projects and Initiatives - The expansion application for Guotai Junan Lingang Innovation Industrial Park REIT has been marked as "feedback received," indicating progress in the expansion process [2] - The first batch of four public REITs received approval for expansion between March and April 2023, marking the beginning of a dual-driven growth pattern [3][4] Group 3: Strategic Implications - The collaboration between listed companies and public REITs is expected to enhance core competitiveness and sustainable development capabilities [3] - Expansion is not only aimed at increasing market size but also at optimizing asset allocation and improving secondary market performance [4]

Core Viewpoint - The China International Capital Corporation (CICC) Xiamen Affordable Rental Housing Closed-End Infrastructure Securities Investment Fund (referred to as CICC Xiamen Anju REIT) has submitted an application for expansion, indicating a proactive approach to enhance its asset portfolio and market presence [1][2]. Group 1: Fund Details - The CICC Xiamen Anju REIT is categorized as an infrastructure public REIT, initiated by Xiamen Anju Group Co., Ltd., and managed by CICC Fund Management Co., Ltd. [2] - The fund's current status is "submitted," with an update date set for April 28, 2025 [2][5]. Group 2: Expansion Plans - CICC Fund announced plans to acquire new assets, specifically targeting affordable rental housing projects in Xiamen, which will diversify the fund's asset mix and enhance cash flow stability [3]. - The expansion aims to activate more existing assets, increase market scale, optimize asset allocation, and improve liquidity in the secondary market [3]. Group 3: Market Context - The recent approval of expansion applications for several public REITs from March to April 2023 marks the beginning of a dual-driven model of "initial issuance + expansion" in the public REITs market [4]. - Other REITs, such as Guotai Junan Dongjiu New Economic Industrial Park REIT and China Aviation Jingneng Photovoltaic REIT, have also submitted expansion applications, reflecting a broader trend in the market [4].

Group 1: Real Estate Market in Shanghai - Seven new residential projects in Shanghai will be launched, totaling 1,219 units and approximately 151,500 square meters [1] - The average filing price ranges from 47,229 yuan per square meter to 145,600 yuan per square meter, with unit sizes from about 89 to 402 square meters [1] - The market shows a dual characteristic of "high-end in core areas and demand-driven in peripheral areas," indicating a strategic focus by developers on project positioning to accelerate capital recovery [1] Group 2: Poly Developments' Convertible Bond Adjustment - Poly Developments announced a reduction in the number of convertible bonds to be issued from 95 million to 85 million, with the total fundraising amount adjusted from 9.5 billion yuan to 8.5 billion yuan [2] - The adjustment reflects the company's intention to optimize its debt structure, focusing on high-potential projects to enhance capital efficiency [2] - The cancellation of the supplementary working capital direction indicates manageable short-term liquidity pressure, reducing reliance on debt financing [2] Group 3: Country Garden's Financial Performance - Country Garden reported total revenue of approximately 252.8 billion yuan for 2024, with equity contract sales amounting to about 47.2 billion yuan [3] - The company delivered over 380,000 housing units, totaling approximately 46.08 million square meters [3] - The operational strategy focuses on maximizing existing delivery resources and ensuring project progress through collaboration with contractors and suppliers [3] Group 4: Greentown China's Revenue Growth - Greentown China achieved revenue of 158.55 billion yuan in 2024, a year-on-year increase of 20.7%, while shareholder profit decreased by 48.8% [4] - The company reported total bank deposits and cash of approximately 73 billion yuan, with a cash-to-short-term debt ratio of 2.3 times [4] - The decline in the weighted average interest cost of total borrowings from 4.3% to 3.9% indicates improved cost management [4] Group 5: Huaxia Jinmao Commercial REIT Performance - Huaxia Jinmao Commercial REIT reported revenue of 84.22 million yuan and a net profit of 14.08 million yuan for 2024 [5] - The fund's total assets reached 1.09 billion yuan, with net assets of 1.04 billion yuan [5] - The underlying asset is located in Changsha, Hunan Province, and is categorized as a consumer infrastructure type [5] Group 6: Market Implications of REITs - As one of the first consumer infrastructure REITs, its performance may serve as a benchmark, potentially accelerating the revitalization of commercial assets by real estate companies [6] - The current expectation for public REITs to expand may attract long-term capital allocation to stable cash flow commercial assets [6] - Attention is needed on tenant structure stability and the impact of regional consumption recovery on rental income [6]