1. Report Industry Investment Rating The provided content does not mention the report industry investment rating. 2. Core Viewpoints of the Report - The underlying assets of Shounong Industrial Park REIT are R & D office - type industrial parks in the Shangdi area of Beijing. The two core tenants, Kuaishou and Xiaomi, account for over 90% of the leased area, and the project occupancy rate in 2024 was about 95%. The original equity holder has rich reserve assets for potential expansion. The fund is expected to attract significant attention in the early stage of listing [2]. - The project assets are relatively new with advanced facilities, and are backed by the Shounong Food Group. The revenue has been shrinking, but the profit margin is relatively high. The occupancy rate remains stable at a high level, and the lease agreements of the two major tenants are stable [2]. - The predicted distribution rates for the second half of 2025 and 2026 are 8.29% and 8.23% respectively, significantly higher than those of other industrial park REITs. The project discount rate is 6%, and the asset valuation has increased by 74.21%. The P/NAV is 1.00 - 1.66 times, and the P/FFO is 16.25 - 27.08 times, comparable to the valuations of listed industrial park REITs [2]. 3. Summary According to Relevant Catalogs 3.1 Basic Issuance Elements - The initial offering of the Chuangjin Hexin Shounong Industrial Park Closed - end Infrastructure Securities Investment Fund is 1 billion shares. The preliminary inquiry period is from 9:00 to 15:00 on June 27, 2025, and the preliminary inquiry range is 2.303 - 3.838 yuan per share. The estimated raised funds are 3.0701 billion yuan, which will be invested in the urban renewal project of the Western Suburb Food Cold Storage (Shounong Financial Technology Innovation Park) and the Shounong Medical Engineering Cross - innovation Center [7][8]. 3.2 New and Advanced Project Assets in a Core Science and Technology Industry Cluster - **Underlying assets comparable to Grade A office buildings, targeting high - end and sophisticated office - type industrial parks**: The infrastructure project is the Zhongguancun Mobile Intelligent Service Innovation Park (Shounong Yuanzhongxin Project), located in the Shangdi area of Beijing. It has a total construction area of 203,643.55 square meters and a leasable area of 160,967.36 square meters, and has been in stable operation since November 2021. It is a model for headquarters - office parks and a benchmark for regional operations, with facilities comparable to Grade A office buildings and supporting commercial spaces [9][10][12]. - **Differentiated property quality in the region, with the average occupancy rate dropping to 70%**: As of Q2 2024, the total inventory of industrial parks in Beijing was about 22.853 million square meters. The Shangdi area ranked third in inventory, accounting for about 15.9%. The property products in the Shangdi area are polarized, and the occupancy rate has been declining since 2022, stabilizing at around 70% in 2024 [14][15]. - **State - owned background of the original equity holder, and stable operation of the project company**: The original equity holder is Beijing Shounong Information Industry Investment Co., Ltd., ultimately controlled by the Beijing State - owned Assets Supervision and Administration Commission. Shounong Information has professional operation capabilities, and the Shounong Food Group directly or indirectly holds 10 expandable industrial park assets [18][20][22]. 3.3 Shrinking Revenue but High Profit Margin - The project's revenue comes entirely from market - based rent, with no government subsidies. From 2022 to 2024, the revenue was 351 million, 332 million, and 283 million yuan respectively, and the EBITDA was 318 million, 278 million, and 228 million yuan respectively, with a CAGR of - 10.3% and - 15.2% respectively. The decline in revenue was mainly due to adjustments in lease agreements with tenants. The gross profit margin and EBITDA margin were relatively high compared to comparable REITs [24][27]. 3.4 Stable High Occupancy Rate and Stable Lease Agreements of Two Major Tenants - **Kuaishou and Xiaomi together account for over 90% of the leased area with strong lease stickiness**: As of May 31, 2025, the two major tenants, Shunjie Zhongheng (related to Kuaishou) and Xiaomi, accounted for 92.98% of the leased area and 97.79% of the 2024 revenue. Kuaishou built its global headquarters in the project through lease - purchase combination, and Xiaomi's global headquarters is adjacent to the project [29][31][32]. - **The project occupancy rate is about 95%, with an expected new supply of 390,000 square meters of R & D office space in the surrounding area**: From 2022 to 2024, the occupancy rate was 96.7%, 96.5%, and 94.5% respectively, higher than that of comparable REITs. There are 3 planned projects in the Shangdi area in the next three years, with a total construction area of 390,000 square meters [35][38]. - **High effective rent, with the rent increase time postponed**: In 2024, the average monthly rent was 197 yuan per square meter, relatively high among surrounding competitors. In 2024 and 2025, the company signed supplementary lease agreements with tenants, postponing the rent increase time [39][41]. - **Long - term lease agreements with scattered expiration times in the next 5 years**: As of May 31, 2025, over 80% of the leased area had lease terms of more than 5 years, and more than 60% of the lease agreements will expire in 2032 or later [42]. 3.5 Project Valuation Comparison - **Predicted distribution rates of 8.29% and 8.23% for the second half of 2025 and 2026 respectively, significantly high**: Based on the Prospectus, the predicted distributable amounts for the second half of 2025 and 2026 are 254.65 million and 252.58 million yuan respectively. With an assumed raised fund of 3.0701 billion yuan, the predicted net cash flow distribution rates are 8.29% and 8.23% respectively, significantly higher than those of other industrial park REITs [46]. - **Project discount rate of 6% and asset valuation increase of 74.21%**: The discount rate is 6.00%, lower than the average of industrial park REITs (6.69%) and the recently issued CICC Yizhuang Industrial Park REIT (7.25%). The project valuation is 3.066 billion yuan, with a valuation increase rate of 74.21%, lower than the comparable REITs average (104%) [48][51]. - **P/NAV of 1.00 - 1.66 times and P/FFO of 16.25 - 27.08 times**: As of December 31, 2024, the NAV is 2.3106 yuan, and the FFO is 0.1417 yuan. Based on the preliminary inquiry range, the P/NAV is 1.00 - 1.66 times, and the P/FFO is 16.25 - 27.08 times, comparable to listed industrial park REITs. The premium rate of the initial offering valuation compared to the assessment value ranges from - 24.89% to 25.18% [52]. - **Predicted capitalization rates of 9.19% and 9.48% for 2025 and 2026 respectively**: According to the Prospectus, the target operating net income for 2025 and 2026 is 281.8806 million and 290.5346 million yuan respectively, corresponding to capitalization rates of 9.19% and 9.48%. The 2025 capitalization rate is higher than the predicted value of CICC Yizhuang Industrial Park REIT (7.99%) [56].

Group 1 - Domestic gold jewelry prices have dropped below 1000 yuan per gram, with notable reductions from major brands such as Chow Tai Fook and Lao Miao [1] - The first domestic REITs project for rental housing has been successfully expanded and listed on the Shanghai Stock Exchange, indicating a growing trend in public REITs issuance [1] - The global smart camera market saw a shipment of 33.87 million units in Q1 2025, reflecting a year-on-year growth of only 4.6%, indicating a slowdown in growth [1] Group 2 - The price of Feitian Moutai has decreased by nearly 300 yuan within a month, with current prices reported at 1830 yuan per box and 1780 yuan per bottle [2] - Shanghai Lianjia is trialing a new "single agency" model to improve service quality in real estate transactions, separating the roles of agents for buyers and sellers [2] Group 3 - McDonald's and Krispy Kreme have decided to terminate their partnership in the U.S., effective July 2, 2025, due to challenges in matching costs with store demand [3] - The Zhejiang Securities Regulatory Bureau has issued a warning letter to Chenguang Electric Machine and related personnel for failing to disclose related party transactions properly [4] Group 4 - Shanghai Shimao Construction has been executed for over 16.4 billion yuan due to various financial disputes, highlighting significant legal and financial challenges [4] - Barclays has downgraded ratings for several advertising companies due to concerns over the impact of artificial intelligence, while maintaining a positive outlook for Publicis [5] Group 5 - Guangdong Construction's subsidiary has received approval for a 5.479 billion yuan renewable energy project, indicating ongoing investment in sustainable energy [7] - Demar Technology has signed a sales contract worth 43.39 million USD with MercadoLibre, focusing on smart logistics systems [9] - Boshi Co. has entered into a business contract with Rongsheng Petrochemical valued at 116 million yuan, expected to positively impact future performance [10] Group 6 - The Shanghai Composite Index rose over 1%, reaching a new high for the year, with significant trading volume of 1.6 trillion yuan, driven by strong performances in financial and military sectors [11]

Group 1 - The first central enterprise warehousing and logistics infrastructure REIT, "Bank of China China Foreign Transport Warehousing Logistics REIT," completed its public offering ahead of schedule due to oversubscription, achieving its fundraising goal in just one day [1][3] - As of June 23, the effective subscription scale for the public investors exceeded the initial fundraising cap, with a total of 400 million shares available at a subscription price of 3.277 yuan per share, aiming to raise 1.3108 billion yuan [3] - The REIT's investment targets include six warehousing and logistics infrastructures located in key logistics nodes such as the Yangtze River Delta and Beijing-Tianjin-Hebei regions, covering the Yangtze River Economic Belt and the coordinated development area of Beijing-Tianjin-Hebei [3] Group 2 - The public REIT market has been thriving this year, with notable instances of rapid sales, including the CICC Yizhuang Industrial Park REIT selling out in one day with a subscription multiple of 265.76 times, setting a record [3] - The strategic placement accounted for 280 million shares, while offline sales totaled 84 million shares, and public sales reached 36 million shares [3] - A total of 109 offline investors managed 575 eligible allocation objects, intending to subscribe for 21.094 billion shares, which is 251.12 times the initial offering amount [3]

Group 1: Cross-Border Payment System - The cross-border payment system between Mainland China and Hong Kong, known as "Cross-Border Payment Pass," has officially launched, allowing real-time remittance in RMB and HKD through direct connections between payment systems [1][2] - The initial participating institutions include major banks from both Mainland China and Hong Kong, with plans for gradual expansion [1] - The advantages of this system over traditional cross-border remittance include improved timeliness and reduced transaction costs, catering to the increasing frequency and scale of cross-border transactions [1][2] Group 2: Alibaba's Restructuring - Alibaba has merged Ele.me and Fliggy into its China e-commerce business group, aiming to transition from an e-commerce platform to a comprehensive consumer platform [3][4] - The integration is part of a strategy to enhance user experience by optimizing business models and organizational structures [3] - The launch of Taobao Flash Sale has significantly increased order volume, indicating a successful expansion into various product categories [3][4] Group 3: Meituan's Instant Retail Expansion - Meituan is expanding its instant retail business, focusing on upgrading retail formats and increasing product categories [5][6] - The company is facing challenges with its community group buying model, which has high operational costs and low profit margins [6] - Meituan's digital supply chain and instant delivery services are expected to be key areas of focus moving forward [6] Group 4: Starbucks China Acquisition Interest - Hillhouse Capital is expressing interest in acquiring Starbucks' China business, with a transaction valuation estimated between $5 billion and $6 billion [7][8] - The acquisition could become one of the largest mergers in China's consumer sector in recent years, as Starbucks seeks to revitalize its business amid increasing competition from local brands [7][8] - The potential deal highlights the trend of foreign consumer brands partnering with local investors for transformation [8] Group 5: Tesla's Robotaxi Launch - Tesla has launched its "Robotaxi" service in Austin, Texas, with a limited fleet and operational hours, initially requiring a safety driver [9][10] - The service is currently in a testing phase, available only to invited users, contrasting with the fully autonomous service previously promoted by Tesla [9] - The launch may allow Tesla to leverage its existing user base for rapid expansion in the taxi market, contingent on advancements in its autonomous driving technology [10] Group 6: Oil Shipping Rates Surge - Oil shipping rates have surged dramatically, with the Baltic Dirty Tanker Index (BDTI) reaching $57,758 per day, a 154% increase from earlier in June [11][12] - The rise in rates is attributed to heightened security concerns in the Middle East, particularly regarding the Strait of Hormuz, a critical oil shipping route [11][12] - Potential closure of the Strait by Iran could lead to significant disruptions in global oil supply, although alternative shipping routes may mitigate some impacts [12][13] Group 7: Public REITs Market Growth - The market for public REITs in China has surpassed 200 billion yuan, with 68 listed projects and a total market value of approximately 204.6 billion yuan [14][15] - Institutional investors dominate the REITs market, with individual investor participation remaining low [14][15] - The growth of REITs reflects a trend towards the securitization of real estate projects, providing higher liquidity compared to traditional real estate investments [14][15]

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]

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the real estate industry and its investment strategies for mid-2025, highlighting the current market conditions and future expectations [1][2][3]. Core Insights and Arguments - **Monetary Policy Impact**: The central bank has maintained the MLF interest rate, which is expected to lead banks to lower commercial loan rates, enhancing liquidity in the market [1][2]. - **High-Quality Housing Financing**: The Financial Regulatory Bureau emphasizes the supply of funds for high-quality residential projects and is accelerating the introduction of financing systems that align with new real estate development models [2][3]. - **Current Housing Sales Policy**: The policy for selling existing homes has extended development cycles to 2-3 years, increasing market uncertainty and sales challenges [1][2]. - **Urban Renewal Initiatives**: The Ministry of Housing and Urban-Rural Development is focusing on urban renewal, with increased financial support from various government bodies [2][3]. - **Special Bonds Utilization**: As of June 2025, approximately 400 billion yuan of special bonds have been used for land acquisition, but only 70 billion yuan in transactions have been completed, indicating a need for stronger government action [1][3]. - **REITs Market Growth**: The issuance of REITs has accelerated, with a 9.07% increase in the CSI REITs index this year, outperforming both stock and bond markets [1][4][5]. Additional Important Content - **Performance of REITs**: - Housing REITs reported a 15% year-on-year revenue growth in Q1 2025, with a distribution fund increase of 11% [1][5]. - Consumer REITs showed resilience with a 7% revenue increase and a 23% rise in distributable funds in Q1 2025 [7]. - **Real Estate Sales Trends**: - The real estate market is experiencing a significant decline in sales volume and area, with expectations of a narrowing decline in the future [8]. - The trend towards luxury new homes is evident, driven by a lack of demand for affordable housing and administrative constraints on land sales [8][11]. - **Developer Sales Performance**: Major developers like Poly Developments and China Resources Land are leading in sales, with cities like Shanghai showing significant transaction volumes [9]. - **Future Market Expectations**: The decline in new home market absorption rates is expected to stabilize around July 2025 due to an influx of quality new homes [10]. - **Land Acquisition Trends**: Developers are increasingly willing to acquire land in core cities, with leading firms showing over 300% year-on-year growth in land acquisition [12]. - **Industry Evolution**: The real estate sector is shifting towards more cautious land acquisition strategies, focusing on high-certainty core areas to mitigate risks [13]. This summary encapsulates the essential insights and trends discussed in the conference call, providing a comprehensive overview of the current state and future outlook of the real estate industry.

Core Viewpoint - The article highlights significant developments in various sectors, including finance, technology, and healthcare, indicating a dynamic market environment with potential investment opportunities. Macro News - The People's Bank of China announced that the Loan Prime Rate (LPR) for one year remains at 3.0% and for five years or more at 3.5%, unchanged from the previous month [5] - The People's Bank of China and the Hong Kong Monetary Authority launched a "Cross-Border Payment Link" to connect payment systems, officially going live on June 22 [5] - The State Administration for Market Regulation is conducting a national quality supervision inspection on 164 products, sampling over 16,000 batches [5] - The Ministry of Finance reported that from January to May 2025, national public budget revenue was 96,623 billion yuan, a year-on-year decrease of 0.3%, while expenditure was 112,953 billion yuan, a year-on-year increase of 4.2% [6] Market Highlights - The China Securities Regulatory Commission (CSRC) is seeking public opinion on the revised "Securities Company Classification Evaluation Regulations," aiming to enhance the evaluation framework and support high-quality development [12] - The first public REITs projects in China have raised over 180 billion yuan in total issuance since their launch, with a total market value exceeding 200 billion yuan [12] - The CSRC approved the registration of pure benzene futures and options, which will enhance risk management tools in the chemical industry [12] - Southbound capital has net bought over 650 billion yuan this year, with public funds accelerating their investment in Hong Kong stock thematic funds [14] Company Dynamics - Tesla signed a contract for its first grid-side energy storage project in mainland China, valued at 4 billion yuan [2] - 澜起科技 announced plans to issue H-shares and list on the Hong Kong Stock Exchange [3] - 华为 launched the developer beta for HarmonyOS 6 at its developer conference [19] - 九号公司 reported a 93% year-on-year increase in sales for its smart electric vehicles during the "618" shopping festival, totaling over 3.24 billion yuan [20] - 甘李药业's insulin product showed promising results in a clinical study presented at the American Diabetes Association conference [20] - 常山药业 received approval for clinical trials of a new weight loss drug [22] - 任子行 announced it would be subject to risk warnings due to an administrative penalty from the CSRC [22]

Core Viewpoint - The rental housing REITs market is experiencing strong demand resilience, with ongoing supply pressures in the short term, driven by urbanization trends and demographic factors [4][10]. Group 1: Market Supply and Demand Dynamics - Demand for rental housing remains robust, supported by net population inflows into major cities and extended rental periods due to delayed marriage and high housing prices [4][8]. - The supply of affordable rental housing is accelerating, with a cumulative construction of 7.27 million units expected by the end of 2024, achieving 84% of the "14th Five-Year Plan" target [4][20]. - The rental market is expected to face short-term supply pressures, particularly in markets with concentrated supply releases, although affordable rental housing is anticipated to outperform the overall rental market [29][30]. Group 2: Evaluating Rental Housing Operational Capability - The operational capability of rental housing can be assessed through asset quality, operational efficiency, and financial metrics [5][45]. - Asset quality considers project location, supply-demand dynamics, and property management capabilities [45][46]. - Operational efficiency focuses on leasing capabilities and tenant management, while financial metrics emphasize cash flow stability [45][49]. Group 3: Outlook for Rental Housing REITs Market Development - The rental housing REITs market is expected to expand through new issuances and capital increases, supported by a substantial stock of rental housing and private fund exit demands [6][52]. - The low-interest-rate environment and "asset scarcity" are likely to sustain the appeal of rental housing REITs as quality investment assets [6][54]. - As of June 18, 2025, the dividend yield for rental housing REITs reached 2.6%, with a narrowing spread compared to the ten-year government bond yield [54][57].

Group 1: Macroeconomic Insights - In May, the national general public budget revenue was 16,007 billion yuan, while expenditure was 19,372 billion yuan, indicating a focus on increasing spending in technology and livelihood sectors [4][5] - Public fiscal revenue growth slowed, with a year-on-year increase of only 0.13% in May, down 1.76 percentage points from the previous value [4][5] - Government fund income decreased by 8.2% year-on-year in May, with land transfer income dropping by 15% [6] Group 2: Investment Strategies - The A-share market has been in a narrow range, with the Shanghai Composite Index fluctuating between 3,300 and 3,400 for nearly two months, indicating a lack of strong market momentum [10][11] - Investment strategies suggest focusing on sectors with high growth potential, such as consumer goods, technology, and stable dividend-paying stocks [12][13][14] Group 3: Industry Performance - The retail sector saw a significant increase in sales during the 618 shopping festival, with total e-commerce sales reaching 8,556 billion yuan, a year-on-year increase of 15.2% [21][25] - The food and beverage sector showed resilience, with the food and beverage index declining only 0.1%, outperforming the broader market [45][47] - The real estate sector is experiencing a recovery, with new and second-hand housing transaction areas increasing month-on-month, supported by favorable policies in cities like Xi'an [29][30][31] Group 4: Specific Company Insights - The REITs market is gaining traction, with the first batch of data center REITs registered, indicating a growing interest in this investment vehicle [50][51] - Companies in the beauty and personal care sector, such as international brands and domestic leaders, are showing strong performance during promotional events [21][48]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The REITs market is expected to continue to perform well due to the downward pressure on bond market interest rates, enhancing the attractiveness of REITs as high-dividend, medium-low risk assets. The anticipated increase in social security and pension fund investments is expected to further improve the cost-effectiveness of allocations in this sector [3][5]. Market Overview - As of the 24th week of 2025, the CSI REITs (closing) index was 893.99, up 12.93% year-on-year and 0.87% month-on-month. The CSI REITs total return index was 1124.63, up 20.46% year-on-year and 0.88% month-on-month. Year-to-date, the REITs index has increased by 18.18%, outperforming the CSI 300 index, which has risen by 12.11%, resulting in an excess return of +6.07% [3][5][15][19]. Trading Volume and Performance - The trading volume of the REITs market reached 590 million shares, a year-on-year increase of 27.43%, with a transaction value of 2.844 billion yuan, up 42.06% year-on-year. The turnover rate for the period was 3.01%, down 11.73% year-on-year [3][26][32]. - In the 25th week, the weekly performance of various REITs sectors was as follows: affordable housing REITs rose by 5.32%, environmental REITs by 1.32%, while highway REITs fell by 0.60% [40][58]. Sector Performance - The one-month performance for the sectors was: affordable housing +8.21%, environmental +2.36%, highway +2.08%, industrial park +1.16%, warehousing and logistics +2.41%, energy +4.44%, and consumer +4.05% [40][58]. Upcoming Developments - The first batch of data center REITs has been registered, and public bidding for two 5A scenic area REITs has commenced. The Southern Runze Technology Data Center REIT has received approval from the China Securities Regulatory Commission, marking it as the first data center REIT on the Shenzhen Stock Exchange [4][12][13].