Group 1: Energy Efficiency and Carbon Reduction - The State Council held a meeting on December 5 to discuss enhancing energy efficiency and carbon reduction efforts, emphasizing the importance of these initiatives in achieving carbon peak and carbon neutrality goals [3] - The construction sector is advised to focus on opportunities related to new power systems, including wind and solar energy projects, distributed solar, pumped storage, new energy storage, virtual power plants, and hydrogen industry chain development [3] Group 2: New Urbanization and Real Estate - On December 3, the State Council conducted a collective study on promoting people-centered new urbanization, aiming to create a new pattern of urban-rural integration [4] - The transition of urbanization in China is moving from rapid growth to stable development, necessitating the implementation of urban renewal actions that integrate safety, real estate stability, and high-quality housing development [4] Group 3: REITs and Infrastructure Investment - The National Development and Reform Commission released a list of industry sectors eligible for REITs projects, covering 15 specific areas including transportation, energy, municipal infrastructure, and urban renewal facilities [5] - The expansion of the REITs issuance scope is expected to enhance the role of infrastructure REITs in revitalizing existing assets and promoting a positive investment cycle [5] Group 4: Retail and Consumer Trends - The U.S. retail sales during Black Friday increased by 4.1% year-on-year, indicating resilience in consumer spending despite various challenges [10] - INDITEX reported a 4.9% year-on-year revenue growth in Q3 2025, with net profit rising by 8.9%, reflecting strong performance and effective cost management [11]

（文章来源：证券日报） 证券日报网讯 12月8日，光明地产在互动平台回答投资者提问时表示，公司目前暂未制定发行REITs的 规划或回购计划，如有计划公司将会及时公告，请注意投资风险，并及时关注公司公告。 ...

Summary of Conference Call Notes on China Data Centres Equities Industry Overview - The focus is on the China data centre industry, specifically companies GDS Holdings (GDS) and VNET Group (VNET) - The industry is expected to experience a slowdown in 2026, with potential recovery in 2027 driven by AI demand and clarity on chip supply issues [2][10] Key Points and Arguments 1. **2026 Slowdown and 2027 Recovery**: - A slowdown in new wholesale orders was noted in 3Q25, attributed to large clients delaying capital expenditures due to uncertainties regarding chip resolutions [2] - GDS's adjusted EBITDA growth is forecasted to slow from 10% in 2025 to 6% in 2026, while VNET's growth is expected to decelerate from 21% to 19% in the same period [2] 2. **Market Resilience**: - Despite disappointing order numbers in 3Q, GDS and VNET's share prices remained resilient, with GDS up 15% and VNET up 8% post-results announcement, indicating that the market has already priced in the anticipated slowdown [3] 3. **REITs as Valuation Benchmarks**: - Both GDS and VNET completed their C-REIT and Private REIT issuances, which are seen as providing valuation benchmarks and future financing channels [4] 4. **Preference for VNET**: - VNET is expected to outperform GDS in growth due to better wholesale capacity utilization and lower electricity costs in Inner Mongolia, which is advantageous for securing large AI orders [5] - VNET is trading at a lower valuation of 10x 2026e EV/adj. EBITDA compared to GDS at 13x [5] 5. **Target Price Adjustments**: - Target prices for both companies have been raised, with GDS's target price increasing from USD 44.10 to USD 46.90 and VNET's from USD 11.40 to USD 14.40 [6] Financial Highlights - **GDS Financials**: - Revenue projections for GDS are CNY 10,322 million for 2024, increasing to CNY 14,053 million by 2027 [11] - Adjusted EBITDA is expected to decline from CNY 6,889 million in 2025 to CNY 5,275 million in 2026 [11] - **VNET Financials**: - VNET's revenue is projected to grow from CNY 8,259 million in 2024 to CNY 14,424 million by 2027 [19] - EBITDA is expected to increase from CNY 2,268 million in 2024 to CNY 4,913 million in 2027 [19] Additional Important Insights - **Risks**: - Potential risks include failure to secure new large orders, chip shortages affecting data centre utilization, and a slowdown in AI data centre investments [34] - **Valuation Methodology**: - GDS is valued using a sum of the parts (SOTP) approach, with a target EV/EBITDA multiple of 13x for its mainland China business and 21x for its international business, DayOne [27][31] - **Market Context**: - The report highlights the competitive landscape, comparing GDS and VNET with peers like Equinix and Digital Realty, indicating a need for strategic positioning in the evolving market [35] This summary encapsulates the critical insights from the conference call regarding the China data centre industry, focusing on GDS and VNET, their financial outlook, market dynamics, and potential risks.

Market Overview - The secondary market for publicly listed REITs in China experienced a downward trend, with the weighted REITs index closing at 180.47 and a weekly return of -0.86% [4] - Compared to other major asset classes, the return rates ranked as follows: US stocks > A-shares > convertible bonds > crude oil > pure bonds > gold > REITs [4] - Among different asset types, water conservancy REITs showed the highest increase, while both property and franchise REITs saw price declines [4] Individual REIT Performance - A total of 17 REITs increased in value, 2 remained stable, and 58 experienced declines during the week [4] - The top three performing REITs in terms of growth were 华夏基金华润有巢REIT, 易方达深高速REIT, and 华泰南京建邺REIT [4] - The trading volume for public REITs reached 1.96 billion yuan, with an average daily turnover rate of 0.38% [4] Trading Activity - The top three REITs by trading volume were 华夏基金华润有巢REIT, 中金普洛斯REIT, and 华夏中国交建REIT [5] - The total net inflow for the week was 22.05 million yuan, indicating increased market trading enthusiasm compared to the previous week [5] - The leading categories for net inflow were transportation infrastructure, consumer infrastructure, and new infrastructure REITs [5] Bulk Trading - The total amount of bulk trading reached 214.55 million yuan, showing a decrease from the previous week [5] - The highest single-day bulk trading amount was 84.80 million yuan on December 2, 2025 [5] New Listings - No new REIT products were launched during the week [6] Project Status Update - One REIT product had its project status updated during the week [7]

Investment Rating - Maintain "Buy" rating for the REITs sector [5] Core Insights - The REITs market is expected to benefit from a low interest rate environment in 2025, with three main investment strategies suggested: focusing on policy-driven projects, recognizing the value of weak-cycle assets, and monitoring the expansion of REITs alongside new issuances [4][5] - The C-REITs secondary market has shown a general pullback, with only the data center sector performing positively, while other sectors like transportation and consumer infrastructure have seen significant declines [12][4] REITs Index Performance - The CSI REITs total return index decreased by 0.85% this week, closing at 1031.5 points, while the CSI REITs index fell by 0.98% to 801.2 points [10][11] - Year-to-date, the CSI REITs total return index has increased by 6.57%, ranking fourth among major indices [2][10] Secondary Market Performance - As of December 5, the total market capitalization of listed REITs is approximately 217.37 billion yuan, with an average market cap of about 2.8 billion yuan per REIT [12] - This week, 17 REITs increased in value while 58 declined, with an average weekly decline of 0.86% [12] Trading Activity - The data center sector exhibited the highest trading activity, with an average daily turnover rate of 0.6% [3] - The average daily trading volume for listed REITs was 121.9 million shares, with a turnover rate of 0.4% [3] Valuation Performance - The internal rate of return (IRR) for listed REITs has shown significant differentiation, with the top three being China Communications Construction REIT (9.7%), Ping An Guangzhou Guanghe REIT (9.6%), and E Fund Guangkai Industrial Park REIT (8.8%) [3] - The price-to-net asset value (P/NAV) ratio for REITs ranges from 0.7 to 1.8, with the highest being 1.8 for Harvest Wumei Consumer REIT [3]

Report Industry Investment Rating No relevant content provided. Core View of the Report - This week, the REITs index fell 1.0% throughout the week, with average weekly price changes of -0.8% for equity - type REITs and -1.1% for franchise - type REITs. In terms of the weekly price changes of major indices, CSI 300 > CSI Convertible Bond Index > CSI Aggregate Bond Index > CSI REITs Index. As of December 5, 2025, the dividend yield of equity - type REITs was 14 BP lower than the average dividend yield of CSI Dividend Stocks, and the spread between the average internal rate of return of franchise - type REITs and the 10 - year Treasury yield was 274 BP. After nearly five months of continuous volatile corrections, the allocation value of current REITs has been significantly enhanced [1]. Summary by Relevant Catalogs Secondary Market Trends - As of December 5, 2025, the closing price of the CSI REITs (closing) index was 801.18 points, with a price change of -1.0% for the week (December 1 - 5, 2025), performing worse than the CSI 300 index (+1.3%), the CSI Convertible Bond Index (+0.1%), and the CSI Aggregate Bond Index (-0.3%). Year - to - date, the price change rankings of major indices were: CSI 300 (+16.5%) > CSI Convertible Bond Index (+16.3%) > CSI REITs Index (+1.5%) > CSI Aggregate Bond Index (+0.4%) [2][6]. - In the past year, the return rate of the CSI REITs index was 4.9%, with a volatility of 7.5%. The return rate was lower than that of the CSI 300 index and the CSI Convertible Bond Index but higher than that of the CSI Aggregate Bond Index; the volatility was lower than that of the CSI 300 index and the CSI Convertible Bond Index but higher than that of the CSI Aggregate Bond Index. The total market value of REITs on December 5 was 217.8 billion yuan, a decrease of 2.1 billion yuan from the previous week; the average daily turnover rate for the whole week was 0.37%, a decrease of 0.13 percentage points from the previous week [2][8]. - Except for water conservancy facilities and new infrastructure, other types of REITs declined. In terms of different project attributes, the average weekly price changes of equity - type REITs and franchise - type REITs were -0.8% and -1.1% respectively. In terms of different project types, the top three REITs in terms of weekly price increases were Huaxia Fund CR Land Youchao REIT (+2.12%), E Fund Shenzhen Expressway REIT (+1.18%), and Huatai Nanjing Jianye REIT (+1.08%) [3][12][16]. - New infrastructure REITs had the highest trading activity. New infrastructure REITs had the highest average daily turnover rate during the period, with an average daily turnover rate of 0.6%; transportation infrastructure REITs had the highest trading volume proportion this week, accounting for 26.2% of the total REITs trading volume. In terms of the capital flow of different REIT products this week, the top three in terms of net inflow of main funds were Huaxia CR Land Commercial REIT (9.1 million yuan), CICC Anhui Expressway REIT (6.83 million yuan), and Southern Runze Technology Data Center REIT (5.27 million yuan) [3][17][18]. Primary Market Issuance - From the beginning of the year to December 5, 2025, there were 3 REIT products in the exchange at the accepted stage, 1 at the declared stage, 2 at the in -quired stage, 5 at the feedback stage, 6 products that had passed and were waiting to be listed, and 14 first - issued products that had passed and were already listed [20]. Valuation Tracking - REITs have both bond and equity characteristics. From the bond perspective, under the constraint of mandatory high dividends, the average annualized cash distribution rate of public - offering REITs was 6.39% as of December 5. From the equity perspective, the relative net asset value premium rate, IRR, and P/FFO were used to judge the valuation of REITs. Different project types of REITs had different values for these indicators [22]. - Equity - type REITs and franchise - type REITs had significant differences in asset rights, income sources, term characteristics, and risk characteristics. As of December 5, 2025, the dividend yield of equity REITs was 14 BP lower than the average dividend yield of CSI Dividend Stocks, and the spread between the average internal rate of return of franchise - type REITs and the 10 - year Treasury yield was 274 BP [25]. Industry News - China Securities Regulatory Commission Chairman Wu Qing stated that REITs should be steadily developed during the "15th Five - Year Plan" period. This indicates that REITs development will face new opportunities [4][31]. - The first urban renewal - type REITs in China was launched in Beijing Yizhuang, with a scale of 753 million yuan. The underlying assets included Borun Industrial Park and the Economic Development Zone Auto Parts Industrial Park [4][31]. - Huaxia Fund announced the expansion and issuance of Huaxia Fund CR Land Youchao REIT, which was the second approved affordable rental housing REIT expansion project in China. The expansion adopted the original holder placement method, with a placement ratio of 0.9 shares for every 1 share of the fund, and the price was set at 2.53 yuan per share, with an estimated total raised funds of 1.1385 billion yuan [4][31].

Core Insights - Market indices are near all-time highs, making equity accumulation at higher valuations concerning [1] - Income-focused funds are viewed as a more attractive investment option during uncertain market conditions [1] - A hybrid investment strategy combining classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds can enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1] Investment Strategy - The strategy emphasizes the importance of high-quality dividend stocks for long-term growth and income generation [1] - The combination of different asset types aims to create a balanced portfolio that maximizes income potential while maintaining total return [1]

1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoints of the Report From December 1, 2025, to December 5, 2025, the secondary - market prices of China's listed public REITs showed a fluctuating downward trend, with a weighted REITs index return rate of - 0.86%. Compared with other mainstream large - category assets, REITs performed weakly. In the primary market, no new REITs products were listed, and the project status of one REITs product was updated [1][11]. 3. Summary According to the Directory 3.1 Secondary Market 3.1.1 Price Trends - **Large - category Asset Level**: The secondary - market prices of China's listed public REITs showed a fluctuating downward trend. The returns of China's public REITs were - 0.86%, ranking behind other mainstream large - category assets such as US stocks, A - shares, convertible bonds, etc. [1][11] - **Underlying Asset Level**: Both the property - type and franchise - type REITs' secondary - market prices declined. Among different underlying asset types, water conservancy facilities REITs had the largest increase, and the top three in terms of return rate were water conservancy facilities, new infrastructure, and energy - type REITs [16][18] - **Single REIT Level**: Among 77 REITs, 17 rose, 2 remained flat, and 58 declined. The top three in terms of increase were Huaxia Fund CR Land Youchao REIT, E Fund Shenzhen Expressway REIT, and Huatai Nanjing Jianye REIT; the top three in terms of decline were Zheshang Shanghai - Hangzhou - Ningbo REIT, China Merchants Expressway REIT, and E Fund Huawei Market REIT [23] 3.1.2 Trading Volume and Turnover Rate - **Underlying Asset Level**: The trading volume of public REITs this week was 1.96 billion yuan, with an average daily turnover rate of 0.38%. The top three in terms of trading volume were transportation infrastructure, consumer infrastructure, and park infrastructure; the top three in terms of average daily turnover rate were ecological and environmental protection, affordable rental housing, and water conservancy facilities [24] - **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 Huaxia Fund CR Land Youchao REIT, CICC Puluosi REIT, and Huaxia China Communications Construction REIT; the top three in terms of trading amount were Huaxia Fund CR Land Youchao REIT, Huaxia CR Land Commercial REIT, and Huaxia China Communications Construction REIT; the top three in terms of turnover rate were Huaxia Fund CR Land Youchao REIT, CICC Chongqing Liangjiang REIT, and Huatai Nanjing Jianye REIT [27] 3.1.3 Main Force Net Inflow and Block Trade Situation - **Main Force Net Inflow Situation**: The total net inflow of the main force this week was 22.05 million yuan, and the market trading enthusiasm increased compared with last week. The top three in terms of net inflow of different underlying asset REITs were transportation infrastructure, consumer infrastructure, and new infrastructure; the top three single - REITs in terms of net inflow were Huaxia CR Land Commercial REIT, CICC Anhui Expressway REIT, and Southern Runze Technology Data Center REIT [31] - **Block Trade Situation**: The total block - trade amount this week reached 214.55 million yuan, a decrease compared with last week. There were block - trade transactions on 4 trading days, with the highest single - day trading volume on December 2, 2025. The top three single - REITs in terms of block - trade amount were China Merchants Expressway REIT, CICC Chongqing Liangjiang REIT, and ICBC Hebei Expressway REIT [32] 3.2 Primary Market 3.2.1 Listed Projects As of December 5, 2025, there were 77 public REITs products in China, with a total issuance scale of 199.301 billion yuan. The transportation infrastructure category had the largest issuance scale, followed by the park infrastructure category. No new REITs products were listed this week [36][38] 3.2.2 Projects to be Listed There were 20 REITs in the to - be - listed state, including 13 first - issue REITs and 7 to - be - expanded REITs. The project status of Ping An Xi'an Gaoke Industrial Park Closed - end Infrastructure Securities Investment Fund (first - issue) was updated to "accepted" [41][42]

2022年后，多支以能源设施为底层资产的公募REITs产品陆 续上市；2025年，机构间REITs也开始逐步涌现。 作者：潘俊田 封图：图虫创意 资产证券化产品正在成为新能源电站的新融资渠道。 今年11月，"太保资产—天合富家新能源基础设施碳中和绿色持有型不动产资产支持专项计划（乡 村振兴）"获批，该项目是分布式光伏领域首单"碳中和+绿色+乡村振兴"三主题持有型不动产ABS （资产支持证券，下称"机构间REITs"），拟发行规模30.45亿元。今年6月，远景能源发行了首 单清洁能源类机构间REITs。此外，碧澄能发新能源、通合新能源等公司也提交了以新能源电站为 底层资产的资产证券化工具，目前正在交易所审核中。 2022年后，多支以能源设施为底层资产的公募REITs产品陆续上市；2025年，机构间REITs也开 始逐步涌现。 广东风丽新能源董事长刘焕礼目前正在推进以光伏电站为底层资产的机构间REITs产品设计发行工 作。刘焕礼向经济观察报表示，新能源电站发行REITs产品的优势，首先是现金流稳定；其次是新 能源电站开发通常以项目公司为主体，能够满足REITs产品对主体风险隔离（主要指企业破产）的 要求；第三是新 ...

Core Insights - High interest rates are creating uncertainty in the debt markets, yet there are high-quality investment opportunities available for investors [1] - A hybrid investment strategy combining classic dividend growth stocks, Business Development Companies, REITs, and Closed End Funds can enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1] Investment Strategy - The focus is on uncovering high-quality dividend stocks and assets that provide potential for long-term growth and significant income generation [1] - The approach aims to create a balance between growth and income, allowing for a total return that aligns with market benchmarks [1]