Core Viewpoint - The Chinese public REITs market has seen significant activity since 2025, with a majority of the 66 public REITs experiencing price increases, particularly in the consumer sector, driven by stable cash flows and improving economic conditions [1][2]. Group 1: Market Performance - As of June 13, 2025, only 2 out of 66 public REITs have declined in the secondary market, with the highest performer, Huaan Bailian Consumer REIT, increasing by 57.75% [1]. - Four consumer REITs have seen price increases exceeding 40%, while 11 have risen between 30% and 40% [1]. - The average dividend yield for consumer REITs is reported to be between 4.5% and 6% [2]. Group 2: Factors Driving Growth - Consumer REITs typically set high initial distribution rates (4%-5%), reflecting the stable cash flow characteristics of their underlying assets, which enhances investor interest [2]. - The decline in interest rates, with the 10-year government bond yield falling below 1.6%, has increased demand for REITs as a yield-generating asset, particularly in a low-interest environment [2][3]. - Consumer REITs are characterized by their resilience to economic cycles, with a reported average occupancy rate of 96.2% and a rent collection rate exceeding 99% [3]. Group 3: Policy Support and Market Sentiment - Recent government policies, such as the "Special Action Plan to Boost Consumption," have provided strong support for consumer infrastructure projects, enhancing confidence in the cash flows and investment value of consumer REITs [4]. - The market sentiment has shifted positively towards consumer REITs, driven by structural opportunities in the consumer sector, particularly during peak consumption periods [4]. - However, many public REITs are trading at high premiums, with Huaan Bailian Consumer REIT's market premium exceeding 50%, indicating potential trading risks [4].

Market Overview - The bond market experienced a slight increase during the week of June 3 to June 6, 2025, with the China Bond Composite Wealth Index (CBA00201) rising by 0.13% and the China Bond Composite Full Price Index (CBA00203) increasing by 0.09% [12] - Interest rates on bonds generally declined, with short-term rates falling more than long-term rates, while credit bond yields primarily decreased, leading to an expansion in credit spreads [12][13] - The People's Bank of China (PBOC) conducted a 1 trillion yuan reverse repurchase operation to support liquidity in the market, indicating a proactive stance towards market conditions [12][13] REITs Market Dynamics - The total market value of China's REITs surpassed 200 billion yuan, reaching 201.99 billion yuan as of June 5, 2025, marking a historical milestone [14][15] - The Shanghai Stock Exchange accounted for 67% of this total, with a market value of 135.2 billion yuan [14] - The performance of the China Securities REITs Total Return Index increased by 1.58% during the week, with operational rights REITs outperforming property rights REITs [14] Public Fund Market Developments - On June 3, 2025, the Shanghai Municipal Development and Reform Commission issued a notice to enhance project reserves for infrastructure REITs, establishing a dynamic reserve library to support quality projects that do not yet meet issuance criteria [16][17] - The notice encourages collaboration with existing REIT platforms and aims to facilitate asset restructuring to inject projects into listed REITs [16][17] - Since March 2, 2025, various local governments have been promoting public REITs development, supported by national policies aimed at expanding the types of underlying assets for REITs [17] Fund Performance Tracking - Short-term bond fund index rose by 0.04% last week, with a cumulative return of 3.83% since inception [19] - Medium to long-term bond fund index increased by 0.10%, achieving a cumulative return of 6.24% [19] - REITs fund index saw a rise of 0.49%, with a remarkable cumulative return of 36.44% since inception [19]

Economic Indicators - In April 2025, the new social financing scale increased by 1.16 trillion RMB, down from 5.89 trillion RMB in March, slightly below the market expectation of 1.26 trillion RMB[2] - The year-on-year growth rate of social financing stock in April was +8.7%, an increase from +0.3 percentage points in March[2] - The total amount of new RMB loans in April was only 11% of the average for the same month over the past five years, indicating weak financing demand from the real economy[2] Loan Dynamics - In April, the balance of loans from financial institutions grew by +7.2%, down from +7.4% in the previous month, continuing a downward trend since the beginning of the year[2] - Resident loans decreased by 5.216 trillion RMB in April, with medium- and long-term loans and short-term loans dropping by 1.231 trillion RMB and 4.019 trillion RMB, respectively[3] - Corporate loans increased by 6.1 trillion RMB in April, but this was a year-on-year decrease of 2.5 trillion RMB, with medium- and long-term loans only reaching 48.9% of the average for the past five years[3] Monetary Supply - The M2 growth rate in April was +8.0%, an increase of 1.0 percentage points from the previous month, while M1 growth rate was +1.5%, a decrease of 0.1 percentage points[4] - The weak performance of social financing and credit reflects insufficient internal demand, low inflation, and external tariff impacts[4] Market Performance - As of May 16, the CSI REITs index rose by +1.24%, outperforming the Shanghai Composite Index, which increased by +0.76%[10] - The average weekly liquidity indicators for nine sectors showed that seven sectors experienced positive changes, indicating improved liquidity conditions[10]

1. Report Industry Investment Rating There is no information provided regarding the industry investment rating in the given content. 2. Report's Core View - From April 21 to April 25, 2025, the secondary - market prices of China's listed public REITs overall declined, with a weighted REITs index return of - 1.13%. Compared with other mainstream asset classes, REITs underperformed [1][11]. - The trading volume of public REITs increased week - on - week, and the average daily turnover rate of warehousing and logistics REITs led. The total net inflow of main funds was 99.65 million yuan, indicating high market trading enthusiasm [2][32]. - The total amount of block trades decreased week - on - week. There were block trades on 5 trading days this week, with a total block - trade turnover of 373.4 million yuan [3]. - Southern SF Logistics REIT was listed on April 21, 2025. The status of the initial offering project of "CICC Yizhuang Industrial Park Closed - end Infrastructure Securities Investment Fund" was updated to "Passed", and the status of the expansion project of "Guotai Junan Dongjiu New Economy Industrial Park Closed - end Infrastructure Securities Investment Fund" was updated to "Feedback Received" [4]. 3. Summary by Relevant Catalogs 3.1 Secondary Market 3.1.1 Price Trends - **At the major asset level**: The secondary - market prices of China's listed public REITs declined. The returns of China's public REITs were - 1.13%, lower than those of US stocks (6.73%), A - shares (1.1%), convertible bonds (2.77%), etc. The return ranking from high to low was: US Treasury bonds > convertible bonds > A - shares > crude oil > pure bonds > gold > REITs [11]. - **At the underlying asset level**: Both equity - type and franchise - type REITs declined, with franchise - type REITs having a smaller decline. Among different underlying asset types, transportation infrastructure REITs had the highest increase this week, followed by consumer and municipal facility REITs [16][17]. - **At the single - REIT level**: This week, 19 REITs rose and 46 declined. The top three in terms of increase were CICC Chongqing Liangjiang REIT, E Fund Huawai Market REIT, and Hua'an Waigaoqiao REIT. After excluding the newly listed Southern SF Logistics REIT, the top three in terms of annualized volatility were CICC Chongqing Liangjiang REIT, Hua'an Bailian Consumption REIT, and China Fortune Joy City Commercial REIT [22]. 3.1.2 Trading Volume and Turnover Rate - **At the underlying asset level**: The trading volume of public REITs increased week - on - week. The warehousing and logistics REITs had the highest average daily turnover rate. The top three in terms of trading volume were warehousing and logistics, transportation infrastructure, and industrial park infrastructure REITs. The top three in terms of average daily turnover rate were warehousing and logistics, ecological and environmental protection, and water conservancy facilities REITs [26]. - **At the single - REIT level**: The trading volume and turnover rate of single REITs continued to show differentiation. The top three in terms of trading volume were Southern SF Logistics REIT, Soochow Sucheng Industrial Park REIT, and Harvest JD Warehousing Infrastructure REIT. The top three in terms of trading value were Southern SF Logistics REIT, CICC Anhui Expressway REIT, and Soochow Sucheng Industrial Park REIT. The top three in terms of turnover rate were Southern SF Logistics REIT, Harvest JD Warehousing Infrastructure REIT, and Huatai Nanjing Jianye REIT [29]. 3.1.3 Main Fund Inflow and Block Trade Situation - **Main fund inflow situation**: The total net inflow of main funds was 99.65 million yuan, indicating high market trading enthusiasm. The top three underlying asset types in terms of net inflow of main funds were warehousing and logistics, transportation infrastructure, and consumer infrastructure REITs. The top three single REITs in terms of net inflow of main funds were Southern SF Logistics REIT, China Resources Commercial REIT, and CICC Anhui Expressway REIT [32]. - **Block trade situation**: The total amount of block trades decreased week - on - week. There were block trades on 5 trading days this week, with a total block - trade turnover of 373.4 million yuan. The highest single - day block - trade turnover was on April 23, 2025, reaching 123.43 million yuan. The top three single REITs in terms of block - trade turnover were China Resources Commercial REIT, China Fortune Capital Outlets REIT, and China Fortune Joy City Commercial REIT [33]. 3.2 Primary Market 3.2.1 Listed Projects - As of April 25, 2025, the number of China's public REITs products reached 65, with a total issuance scale of 17.3026 billion yuan. Among them, transportation infrastructure REITs had the largest issuance scale, reaching 6.8771 billion yuan, followed by industrial park infrastructure REITs with an issuance scale of 2.7062 billion yuan [38]. - Southern SF Logistics REIT was listed on April 21, 2025 [39]. 3.2.2 Projects to be Listed - According to the project announcements of the Shanghai and Shenzhen Stock Exchanges, there were 23 REITs in the pipeline, including 13 initial offering REITs and 10 expansion REITs. - The status of the initial offering project of "CICC Yizhuang Industrial Park Closed - end Infrastructure Securities Investment Fund" was updated to "Passed", and the status of the expansion project of "Guotai Junan Dongjiu New Economy Industrial Park Closed - end Infrastructure Securities Investment Fund" was updated to "Feedback Received" [42].