Group 1 - The core point of the news is that Huaxia Fund has completed the application process for the first expansion and acquisition of infrastructure projects for the Huaxia Fund Huayun REIT (508077) in 2024, receiving approval from the China Securities Regulatory Commission and a no-objection letter from the Shanghai Stock Exchange [1][2] - The infrastructure project to be acquired is the Youchao Majiao project located in Minhang District, Shanghai, which officially opened in March 2023 and is recognized as a demonstration project for affordable rental housing in Shanghai [1] - The Youchao Majiao project offers a multi-tiered rental housing product and has received multiple recognitions, including the "Shanghai Talent Housing Project" and "Minhang District First Batch of Talent Station Pilot Project" [1] Group 2 - The expansion and acquisition of infrastructure projects by public REITs is a significant feature of public REIT products and an important measure to promote the healthy development of public REITs [2] - The expansion of Huaxia Fund Huayun REIT will facilitate a positive cycle between existing and new assets, providing investors with further opportunities to participate in the development of affordable rental housing [2] - The current acceleration of public REITs expansion is contributing to the advancement of public REITs in China to a new level [2]

Report Industry Investment Rating - No industry investment rating is provided in the report. Core Viewpoints - Participation in the expansion can be achieved through primary subscription and secondary market trading. Primary subscription is suitable for allocation - oriented investors, allowing for large - scale allocation and having a shorter lock - up period than IPO projects. However, profitability is related to the subscription timing. Original equity holders are important participants in the expansion, with historical subscription ratios ranging from 20% to 51%. Non - existing investors also have the opportunity to participate in primary subscription. The subscription price of the expansion is about 90% - 100% of the pricing benchmark. The valuation of the expanded shares is related to the offering timing and asset quality. Compared with current IPO projects, the primary - secondary price difference of expansion projects is smaller, with an average first - day listing increase of only 1%. Considering the lock - up period of more than 6 months, the primary subscription return will be significantly affected by the overall market trend, and the new - share subscription strategy has limited effectiveness [3]. - Secondary market trading is divided into dividend - based trading and event - based trading. For dividend - based trading, after the expansion plan is announced, the change in dividends can be calculated based on the distribution rate difference, expansion discount rate, and expansion market value ratio, and the theoretical price increase or decrease of REITs can be calculated accordingly. For existing investors, whether to participate in the expansion does not affect subsequent dividends. If dividends are thickened, they should continue to hold; if thinned, they can consider reducing their holdings. For incremental investors, they can buy assets likely to expand when the secondary market meets their cash distribution rate requirements and wait for dividend thickening. For event - based trading, there are short - term trading opportunities during the expansion process. The best time to buy is when the issuer replies to the exchange's inquiries, with a 100% win - rate for buying on that day and selling after holding for 1 day. The exchange's approval day is also a good time [4]. - Looking ahead, expansion may be an important way of new supply in the next 1 - 2 years. For investors, the most important thing about expansion is to provide relatively abundant asset supply to meet their allocation needs. This is because the development time of mainland China's REITs is short, although the number has exceeded that of Japan, the average market value is low, and policy support for expansion is obvious. As of October 24, 2025, there are 5 projects that have announced expansion plans but have not completed the offering and listing, distributed in 4 industries: affordable housing, industrial parks, energy, and consumption; another 6 projects have released expansion information but have no detailed expansion plans [4]. Summary by Directory 1. Primary Subscription: Pricing Process, Valuation Comparison, and Returns 1.1 Pricing Process - The expansion pricing process is similar to that of IPO, with three important announcement nodes: the prospectus determines the asset situation, approximate pricing range, and offering method; the share - holders' meeting proposal announces strategic investors and lock - up periods; the private placement offering report announces the offering price [8][9]. - The main participants are original equity holders and new investors. According to historical expansion cases, the subscription ratio of original equity holders ranges from 20% to 51%, and the subscription price is about 90% - 100% of the benchmark price [10][13]. 1.2 Valuation Comparison - Vertically compared, expansion shares are more expensive than IPO shares, which may be related to the decline in the risk - free rate in recent years. Generally, the distribution rate of expansion is lower than that of IPO, but for some projects like Bosera Shekou Industrial Park and Guotai Junan Dongjiu, the expansion distribution rate is higher, possibly due to the lower quality of expansion assets. The distribution rate difference of CICC GLP is not obvious [14][18]. - Horizontally compared, there is no significant difference in the valuation of expansion shares and contemporaneous IPO shares. The cash distribution rate of expansion projects is in the middle among contemporaneous IPO projects in the same industry [19]. 1.3 Returns - The first - day listing increase of expansion projects is lower than that of IPO projects. The primary - secondary price difference of expansion projects is small because the expansion pricing is not less than 90% of the secondary - market price of individual bonds. The longer the holding period, the more it is affected by the overall market trend. For example, the first batch of expansion projects in 2023 had negative returns for holding half - year and one - year, which is related to the bear market of REITs in 2023 [23][26]. 2. Secondary Market: Dividend - Based Trading and Event - Based Trading 2.1 Dividend - Based Trading - The change in dividends is determined by the difference between the distribution rate of expansion assets multiplied by the discount rate and the pre - expansion distribution rate, as well as the expansion market value ratio. The expansion market value ratio determines the amplitude of the thickening or weakening of dividends [29]. - After the expansion plan is announced, the change in dividends can be calculated, and the theoretical increase or decrease of REITs can be estimated by discounting the dividend change. According to historical cases, the theoretical increase or decrease of implemented expansion plans ranges from - 2% to 16%. In practice, there is a large difference between the actual and theoretical increases or decreases, which may be related to the market situation [33][34]. 2.2 Event - Based Trading - There are short - term event - based trading opportunities during the expansion process. The best time to buy is when the issuer replies to the exchange's inquiries, with a 100% win - rate for buying on that day and selling after holding for 1 day. The exchange's approval day is also a good time. This strategy is suitable for short - term trading, and the return for holding 3 days is likely to be lower than that for holding 1 day [36][38]. 3. Market Outlook - Expansion may be an important way of new supply for REITs in the next 1 - 2 years. Mainland China's REITs have a short development time, with a larger number but lower average market value compared to Japan. Policy support for expansion is obvious. As of October 24, 2025, there are 5 projects that have announced expansion plans but have not completed the offering and listing, and 6 projects have released expansion information but no detailed plans [41][44].

Core Viewpoint - The successful expansion of the Huaxia Beijing Affordable Housing REIT marks a significant milestone in China's public REITs market, indicating a dual-driven model of "initial issuance + expansion" and accelerating the normalization of REITs issuance [1][2]. Group 1: REITs Market Development - The expansion of public REITs is a crucial feature that promotes the sustainable development of the REITs market and enhances its refinancing capabilities [2]. - Since June 2023, the Shanghai Stock Exchange has actively promoted the expansion of listed REITs, with 6 REITs announcing expansion plans in 2024, of which 2 have been approved and 4 are under review [2]. - As of June 25, there are 44 publicly listed REITs on the Shanghai Stock Exchange, with a total issuance scale of 122.6 billion yuan, covering various asset types including toll roads, industrial parks, and rental housing [2]. Group 2: Financial Performance and Projections - The Huaxia Beijing Affordable Housing REIT has distributed approximately 128 million yuan in dividends since its listing in August 2022 [1]. - The recent expansion raised approximately 946 million yuan, with assets including four mature rental housing projects located in various districts of Beijing [1]. - The projected annual cash distribution rate for the expanded project in 2025 is 4.11%, which is higher than the distribution rate calculated based on the market value of the initial issuance [1].

Group 1 - The fund manager, Shanghai Guotai Haitong Securities Asset Management Co., Ltd., has changed its name as of July 25, 2025, and is responsible for managing the fund [2] - A communication-based meeting for the fund's shareholders will be held on July 28, 2025, to discuss the first expansion of the fund for 2024 and the introduction of strategic investors [2] - The fund will suspend trading on the Shanghai Stock Exchange starting from the meeting date and will resume trading on July 29, 2025, after the meeting's resolutions are announced [3] Group 2 - Investors can access information through the fund manager's website or customer service hotline for inquiries [4]

Group 1 - The core viewpoint of the news is the sudden imposition of high tariffs by the United States, which has triggered a global trade crisis, with tariffs reaching up to 70% and affecting over 170 countries [1] - The A-share market has reacted to the tariff crisis, with the Shanghai Composite Index showing a "lightning rod" pattern, indicating that the market has partially digested the expected impact of the tariffs [2] - Export-dependent sectors, such as consumer electronics, are facing significant pressure, while domestic demand-driven sectors like infrastructure and finance are expected to act as safe havens for capital [2] Group 2 - The Chinese central bank has introduced new cross-border payment regulations, providing a solid policy shield for the banking and fintech sectors against external risks [3] - Northbound capital is actively buying into the A-share market, reflecting foreign investors' long-term confidence, while public REITs are injecting continuous capital into the infrastructure sector [3] - The technical support level at 3430 points on the 10-day moving average is seen as a strong defense line, with the previous high at 3480 points potentially serving as a rally point for the A-share market [3]

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].