Core Viewpoint - The infrastructure REITs market in China is expected to experience long-term stable development due to continuous supportive policies and strong performance in the secondary market [1][2]. Group 1: Supportive Policies - As of September 26, there are 87 infrastructure REITs in various stages of listing, with the majority being park, transportation, and consumer infrastructure types [2]. - Recent policies from the National Development and Reform Commission and other departments aim to expand project types and optimize mechanisms, enhancing the breadth and depth of the infrastructure REITs market [2]. - The policies encourage the regular listing of mature assets that can generate stable cash flows, facilitating a positive investment cycle by allowing funds to be reinvested into new projects [2][3]. Group 2: Market Performance - The infrastructure REITs market has shown a volatile adjustment trend recently, with the CSI REITs Total Return Index down 0.65% as of September 26, but it has increased by 9.97% year-to-date [4]. - Among the 74 listed REITs, 65 have achieved positive returns, with 39 showing gains exceeding 10% [4]. - Specific REITs, such as the Jiashi Wumei Consumer REIT, have seen significant year-to-date increases, with a rise of 45.19% [4]. Group 3: Market Characteristics - The infrastructure REITs market is characterized by high liquidity, relatively stable returns, and strong safety features, making it attractive for investors seeking stable investments and diversified asset allocation [4][5]. - The introduction of diverse asset types is expected to meet varying investor preferences and attract a broader range of capital into the market [3].

Core Viewpoint - The recent performance of highway REITs in the Shanghai market shows strong operational stability and high dividend distribution, attracting significant investor interest [1][5][9]. Group 1: Performance and Financials - As of June 30, 2025, there are 10 highway REITs in the Shanghai public market with a total issuance scale of 54 billion yuan, accounting for about one-third of the total market REITs issuance [2]. - The total toll revenue for the disclosed highway REITs reached approximately 1.88 billion yuan in the first half of 2025 [2]. - The management of various REITs has implemented measures to enhance operational efficiency, resulting in a 4.25% decrease in operating costs for the National Gold Iron Construction REIT compared to the same period in 2024 [3]. Group 2: Dividend Distribution - In the first half of 2025, highway REITs achieved a total distributable amount of 1.585 billion yuan, with an average annualized cash distribution rate of 8.45% [5]. - The China Gold Shandong Highway REIT has distributed dividends three times this year, totaling approximately 139 million yuan, with a distribution ratio of about 100% [6]. - The Huatai Jiangsu Control REIT reported a 16.75% year-on-year increase in vehicle toll revenue, amounting to 200.51 million yuan [3]. Group 3: Market Outlook - The transportation sector in China is showing robust growth, with a 3.9% year-on-year increase in freight volume and a 4.2% increase in passenger flow in the first half of 2025 [10]. - Experts believe that the implementation of differentiated toll discounts will encourage more freight to shift to highways, potentially improving the profitability of the highway sector [10].

Group 1 - The Chinese government is actively promoting policies to stimulate private investment, which is crucial for sustainable economic growth and enhancing investment quality and efficiency [1][2] - The State Council meeting emphasized the need to broaden the space for private investment, particularly in new productive forces, emerging services, and new infrastructure [2] - The National Development and Reform Commission plans to establish minimum shareholding requirements for private capital in major projects like railways and nuclear power, aiming to attract more private investment [2][3] Group 2 - The latest data from the National Bureau of Statistics indicates a 2.3% year-on-year decline in private investment from January to August, but a 3.0% increase when excluding real estate development [4] - The manufacturing sector has seen a 4.2% year-on-year increase in private investment, outpacing overall private project investment growth by 1.2 percentage points, with significant contributions from the automotive and aerospace industries [5] - The introduction of private capital is expected to enhance funding sources for major national projects, reduce fiscal burdens, and improve market-oriented operations, thereby fostering innovation and industry upgrades [6]

Group 1 - The stock of GDS Holdings Limited (09698) opened lower but rose over 4% in the afternoon, reaching a price of HKD 39.52 with a trading volume of HKD 517 million [1] - The National Development and Reform Commission has issued a notice to further promote the normalization of Real Estate Investment Trusts (REITs) in the infrastructure sector, which includes specific measures to expand the market and support fundraising [1] - According to Jefferies, newly listed REITs can apply for asset injection six months post-IPO, which could accelerate acquisitions, positively impacting GDS Holdings and Century Internet [1] Group 2 - Huatai Securities reported that GDS Holdings shared key investor concerns at a strategy meeting, highlighting continuous improvement in the domestic data center business and an increase in new orders [1] - The data center industry is currently experiencing a cycle of supply and demand improvement [1] - DayOne is actively launching new projects in Europe and Southeast Asia, aiming to achieve a target of signing 1GW capacity within three years [1] - GDS Holdings successfully issued the first batch of domestic data center REITs, receiving significant market attention and reflecting capital market recognition of high-quality digital infrastructure assets [1]

Core Viewpoint - The approval of the Huaxia Anbo Warehouse Logistics Closed-End Infrastructure Securities Investment Fund (Huaxia Anbo Warehouse REIT) marks a significant step in the development of China's logistics infrastructure industry, reflecting the increasing interest of foreign enterprises in the Chinese public REITs market [1][2]. Group 1: Company Overview - Huaxia Anbo Warehouse REIT is initiated by Prologis, L.P., a leading global logistics warehouse facility investor and operator, with a total asset management area of 121 million square meters across 20 countries [1]. - Prologis entered the Chinese market in 2003 and currently operates 44 logistics centers in 24 core consumer cities in China, covering an asset area of approximately 5.3 million square meters [1][2]. Group 2: Asset Details - The underlying assets of Huaxia Anbo Warehouse REIT are three benchmark projects located in the Guangdong-Hong Kong-Macao Greater Bay Area: the Anbo Guangzhou Development Zone Logistics Center, the Anbo Dongguan Shipai Logistics Center, and the Anbo Dongguan Hongmei Logistics Center [1]. - This REIT is the only product among listed and declared warehouse logistics REITs with all assets located in the Greater Bay Area [1]. Group 3: Market Context - The logistics demand in the Guangdong-Hong Kong-Macao Greater Bay Area is robust, with the three assets serving a large consumer base and established retail networks [2]. - The assets are designed and managed according to international leading standards, ensuring high maturity and good operational status, primarily used for urban distribution [2]. Group 4: Strategic Importance - The approval of Huaxia Anbo Warehouse REIT is seen as a reflection of the accelerating layout of foreign capital in China's public REITs market and is expected to significantly contribute to the development of the logistics infrastructure industry in China [2]. - The core management team of the operating management institution comes from Prologis China, with over 15 years of experience in the industry [2]. Group 5: Executive Insight - The Chairman of Prologis China, Wu Juan, emphasized that issuing public REITs in China is a crucial tool for expanding investments, enhancing capital operation efficiency, and providing opportunities for domestic and foreign investors to participate in the logistics infrastructure sector [3].

Core Viewpoint - The recent notification from the National Development and Reform Commission aims to promote the normalization of public REITs in the infrastructure sector, enhancing market expansion and asset innovation [1][2]. Group 1: Market Expansion and Asset Types - The public REITs market in China has seen a steady increase in the number of listed products, reaching 74 as of September 18, with the market now leading Asia in product quantity [2]. - The types of underlying assets for public REITs have expanded to 10 categories, with the largest number being park-based assets, totaling 19, while transportation, consumption, and logistics assets each exceed 10 [2][3]. - The notification emphasizes the need to explore new asset types with significant potential for issuance, such as heating, water conservancy, data centers, and sectors like tourism and elderly care that currently lack issuance cases [3]. Group 2: REITs Size and Market Dynamics - Despite the quantity advantage, the average size of individual REITs in China is relatively small, with mainland REITs averaging $3.7 billion compared to $15.94 billion in Japan and $17.28 billion in Singapore [3][4]. - The notification encourages the issuance of larger-scale funds that can significantly impact the expansion of the infrastructure REITs market, aiming to establish leading REIT products to support steady market development [4]. Group 3: Fundraising and Expansion Mechanisms - The notification supports existing REITs in raising funds through expansion to acquire quality assets, simplifying the process for new project applications [5]. - Currently, only 6 REITs have undergone their first expansion, indicating a need for growth in this area compared to more mature markets like the U.S. and Singapore, where expansion significantly boosts market size [5][6]. - The notification introduces important changes to the expansion mechanism, reducing the expansion initiation period to 6 months and allowing for cross-industry and cross-regional asset integration, facilitating the transition of REITs into comprehensive asset operation platforms [6].

Core Viewpoint - Recent policy signals from the National Development and Reform Commission and the State Council emphasize the importance of promoting private investment for sustainable economic development, enhancing investment quality and efficiency, and injecting new vitality into the market [1][3]. Group 1: Policy Initiatives - The State Council meeting, chaired by Premier Li Qiang, highlighted the need to stimulate private investment and expand its scope, particularly in new productive forces, emerging services, and new infrastructure [3]. - The National Development and Reform Commission plans to introduce policies to facilitate private investment, including setting minimum shareholding ratios for private capital in major projects in sectors like railways, nuclear power, and oil and gas pipelines [3][4]. - The use of Real Estate Investment Trusts (REITs) is encouraged to transform "heavy assets" into "light securities," allowing private capital to invest in infrastructure projects with lower initial costs and improved exit efficiency [4]. Group 2: Investment Trends - Data from the National Bureau of Statistics indicates that private investment decreased by 2.3% year-on-year from January to August, but when excluding real estate development, it grew by 3.0% [5]. - Manufacturing sector private investment increased by 4.2% year-on-year during the same period, surpassing the overall private investment growth rate [6]. - In 31 manufacturing sectors, 16 experienced double-digit growth in private investment, with notable increases in automotive manufacturing (22.6%) and transportation equipment (16.2%) [7]. Group 3: Future Outlook - Despite current pressures on private investment due to complex domestic and international environments, the long-term outlook for economic development in China remains positive, providing support for private investment growth [7]. - The introduction of private capital is expected to broaden funding sources, alleviate fiscal burdens, and enhance the market-oriented operation of major projects, fostering technological and management innovations [7]. - The key to realizing policy benefits lies in effectively implementing and refining these policies to ensure private capital can transition from being merely visible to being tangible and profitable [7].

Group 1 - The core viewpoint of the articles emphasizes the importance of developing a high-quality public fund system in Beijing, particularly focusing on the integration of pension facilities into the infrastructure REITs framework to address the aging population issue in China [1][3][7] - As of the end of 2024, the population aged 60 and above in China reached 310 million, accounting for 22% of the total population, indicating a significant demographic shift towards an aging society [1][2] - The number of elderly care institutions increased from 116,000 in 2015 to 406,000 in 2024, a growth of 250%, while the number of elderly care beds grew from 6.727 million to 7.993 million, reflecting a 19% increase, highlighting a mismatch between the growth of institutions and available beds [2][3] Group 2 - The Chinese government has introduced multiple policies to support the pension industry, including the encouragement of issuing REITs for pension facilities, with the first mention of this initiative occurring in a central government document in January 2025 [3][4] - The issuance of pension facility REITs is currently in a developmental stage, facing challenges such as the need for better understanding and training among pension institutions regarding REITs, and the requirement for non-profit institutions to restructure to comply with profit distribution regulations [6][7] - The development of pension facility REITs is expected to alleviate funding bottlenecks for pension institutions, stimulate social capital participation, and create a virtuous cycle of investment in the pension asset market [7][8]

Group 1 - The core performance of CICC Prologis REIT for the first half of 2025 includes total revenue of approximately 216 million yuan and EBITDA of about 138 million yuan, with a distributable amount of around 167 million yuan [1] - Rental and property management service fee income reached approximately 214 million yuan, while the EBITDA from infrastructure projects was about 144 million yuan, resulting in a net profit margin of 67.12% after excluding fair value changes [1] - The REIT efficiently served 70 clients across various industries, including e-commerce, express logistics, and pharmaceutical cold chain, with an average leasing rate exceeding 90% for 10 logistics parks [1] Group 2 - Prologis, as the original rights holder and external management institution of CICC Prologis REIT, enhances tenant stickiness and park competitiveness through refined operations and asset renewal initiatives [2] - The company is implementing systematic park renovation plans, exemplified by the upgrades at Prologis (Chongqing) urban distribution logistics center, which include facade renovations, landscaping upgrades, and road repairs [2] - Prologis is actively creating a vibrant park ecosystem by hosting various activities to enhance tenant belonging and satisfaction, contributing to stable operations and long-term value growth [2]

1. Report Industry Investment Rating No information about the industry investment rating is provided in the report. 2. Core Viewpoints of the Report - The stabilization trend of the REITs market is consolidated, with a narrowing adjustment range. The valuation has dropped again, but the spread between equity - type REITs and stocks and bonds remains strong [3]. - The trend of institutional top - level quotations persists, and the offline subscription sentiment remains high. The offline subscription yield in 2025 has reached 3.45% [3]. - Multiple types of assets are accelerating their entry into the market, and the "mixed - loading" of expansion and fundraising has opened up new avenues. The National Development and Reform Commission's "Document No. 782" promotes market expansion [3]. - The discount rate of the initial valuation of logistics REITs is narrowing, and new asset bidding is being carried out successively [3]. 3. Summary Based on Relevant Catalogs 3.1 REITs Market Adjustment Range Narrows, and the Spread Compared to Stocks and Bonds Remains Strong - **Market Index Performance**: In the first half of September 2025, the A - share market rose after a slight adjustment, while the 10 - year Treasury yield continued to rise. The China Securities REITs Index fell 0.81%, with a significantly narrower decline than in August [11]. - **Sector Performance**: Only rental - protected housing and consumer REITs rose, with increases of 0.63% and 0.37% respectively. Other sectors' declines also narrowed. Nearly 80% of industrial park REITs declined [16][19]. - **Liquidity**: The overall turnover rate of the market dropped to 0.48%. Only the turnover rate of rental - protected housing REITs increased by 0.08 percentage points, while energy and transportation REITs had significant contractions [24]. - **Dividend Yield**: As of September 15, 2025, the dividend yield of equity - type REITs was 3.92%. The spread with the 10 - year Treasury was at the 41% quantile, and the spread with the CSI Dividend was at the 71% quantile. The dividend yield of consumer REITs decreased significantly [28]. - **Valuation**: Both equity - type and concession - type REITs' valuations declined. The P/NAV of equity - type REITs was at the 58% quantile, and the P/FFO of concession - type REITs was at the 57% quantile. The IDC valuation increased significantly [32]. - **IRR**: The IRR quantiles of both types of assets increased. The industrial park's IRR quantile rose to 58% [35]. 3.2 The Trend of Institutional Top - Level Quotations Persists, and the Offline Subscription Sentiment Remains High - **New Issue**: In the first half of September 2025, Huaxia Kaide Commercial REIT was issued, with an issuance scale of 2.287 billion yuan. As of September 15, 2025, there were 74 listed REITs in Shanghai and Shenzhen, with a total market value of 221.7 billion yuan [40]. - **Offline Subscription**: The offline effective subscription multiple of Huaxia Kaide Commercial REIT reached 252.6 times, ranking third in history. The top - level subscription amount decreased to 639 million yuan. 98% of the products quoted at the upper limit of the inquiry price, but the final pricing was at the 82% position of the inquiry range, with an increased profit - sharing margin [41][50]. - **Offline Enrollment and Allocation**: The offline enrollment rate of Huaxia Kaide Commercial REIT was about 99%, and the offline allocation ratio was 0.40% [56]. - **Initial Performance and Yield**: The first - day increase of CICC Vipshop Outlet REIT in September was 27%. Excluding extreme values, the offline new - share subscription yield in 2025 was 3.45% [61]. 3.3 Multiple Types of Assets are Accelerating Their Entry into the Market, and the "Mixed - Loading" of Expansion and Fundraising has Opened up New Avenues - **Policy Promotion**: On September 12, 2025, the National Development and Reform Commission issued "Document No. 782", which accelerates the expansion of the REITs market. It supports the issuance of new assets such as railways, ports, and cultural and tourism assets and encourages more private investment projects to be listed [65]. - **Asset Expansion**: It promotes the application of mature assets, organizes the issuance of potential assets, and explores the issuance path of new assets. It also supports more private investment projects [70]. - **Expansion and Fundraising Simplification**: The expansion and fundraising threshold is shortened to 6 months, and the purchase of similar or related cross - industry assets is allowed [71][79]. - **Project Cultivation**: It is necessary to establish a project work ledger, strictly control project quality, and encourage an increase in the net recovery of project funds [83]. 3.4 The Discount of the Initial Valuation of Logistics REITs is Narrowing, and New Asset Bidding is Being Carried Out Successively - **Projects Under Review**: As of September 15, 2025, two expansion and fundraising projects have been registered but not issued, and 14 projects are under review [85]. - **Valuation Update**: In the first half of September, the valuation of two initial public offering projects was updated. The latest valuation discount rate of warehousing and logistics REITs has narrowed [88][94]. - **Bidding Update**: In the first half of September 2025, the bidding information of two public REITs was updated, including a new cultural and tourism project and a transportation project [96][99].