Core Viewpoint - The recent policy document from the Central Committee and State Council emphasizes the establishment of a sustainable urban construction and operation financing system, highlighting the importance of bond markets and other financial services in supporting high-quality urban development [1] Group 1: Bond Market Functionality - The bond market is crucial for urban construction financing, with local government special bonds playing a significant role in addressing core needs such as new infrastructure and green transformation [2][3] - Expanding the use of local government special bonds can create a positive cycle between finance and the economy, thereby enhancing urban construction [2][3] - The current low interest rate environment presents an opportunity to leverage the bond market to lower financing costs for urban development [3] Group 2: REITs Advantages - Real Estate Investment Trusts (REITs) serve as an important channel for financing urban construction projects, connecting capital markets with urban development [3][4] - By packaging mature, cash-flow-stable urban projects into REITs, funds can be quickly raised in the public market, creating a cycle of investment and reinvestment [4] - Recent policies have increasingly supported the issuance of REITs in various sectors, including new infrastructure and urban renewal projects [4] Group 3: Long-term Funding Assurance - A sustainable financing system is essential for high-quality urban development, requiring multi-faceted policy efforts to attract social capital and establish a comprehensive financing toolset [5][6] - Optimizing project operation and revenue distribution mechanisms is critical to encourage social capital participation in urban development [6][7] - Reforming local financing platforms and adjusting public utility pricing mechanisms are necessary to enhance resource allocation efficiency and support sustainable development [6][7]