Core Viewpoint - The public REITs market in China has witnessed its first case of a failed issuance during the exchange review stage, highlighting the impact of new regulatory guidelines introduced at the end of 2025 [3][4]. Group 1: Case Studies of Failed Issuance - Jin Feng Technology announced the termination of its public REITs application on January 19, 2026, due to long-standing failure to respond to exchange feedback, aligning with new regulatory requirements [4]. - Similarly, Electronic City also withdrew its public REITs project application on the same day, indicating a trend of stalled projects under the new guidelines [5]. Group 2: Regulatory Changes and Market Impact - The new guidelines issued by the Shanghai and Shenzhen Stock Exchanges on December 31, 2025, aim to enhance transparency and efficiency in the review process for public REITs, defining specific circumstances under which applications can be terminated [5]. - The guidelines list seven conditions for termination, including failure to respond to feedback within the stipulated time and the expiration of financial data and asset evaluation reports [5]. - As of the end of 2025, there are several projects in the review stage that have not progressed, raising concerns about their compliance and operational status [5]. Group 3: Future Market Trends - A head of REITs business at a leading fund company noted that the new regulations necessitate enhanced due diligence before application submissions, shifting the focus from issuance to compliance and operational management [6]. - The public REITs market is transitioning towards favoring projects with stable cash flows and sound operational management, as indicated by the Jin Feng Technology case [6]. - According to Wind statistics, by the end of 2025, there were 79 public REITs listed with a total issuance scale exceeding 210 billion yuan, reflecting a growing market [6]. - A report from China International Capital Corporation suggests that the public REITs market is entering a new phase of normalized issuance, with expectations for continued growth in scale, asset diversity, and improved investor structure in 2026 [6].