Core Viewpoint - The rapid development of China's REITs market since the first public REITs were launched in June 2021, with a total issuance scale of 213.5 billion yuan by the end of 2025, indicates a significant shift towards commercial real estate becoming a key component of the REITs framework [1][2]. Group 1: Market Expansion and Policy Support - By the end of 2025, 78 public REITs have been issued, covering ten categories of assets, with a total issuance scale of 213.5 billion yuan [1]. - The inclusion of commercial real estate in the pilot scope of public REITs is expected to enhance the connection between physical assets and capital markets, supported by policies from the China Securities Regulatory Commission [1][3]. - The National Development and Reform Commission's announcement of the 2025 version of the REITs project industry scope list is seen as a critical institutional leap in the development of China's REITs [3][4]. Group 2: Asset Management and Market Dynamics - The REITs market is transitioning from a "policy tool" to a "market-oriented asset management platform," emphasizing the need for stronger asset management and operational capabilities [3]. - The potential market space for commercial real estate REITs is estimated to be in the trillions, with over 40 trillion yuan in existing office, retail, and hotel properties, suggesting that even a 5%-10% securitization could yield significant market opportunities [4]. Group 3: Investment Trends and Institutional Participation - Institutional investors, including insurance and wealth management funds, are increasingly allocating to REITs due to their stable rental income and cash flow, which align with the long-term liability profiles of these funds [6]. - The liquidity advantage of REITs, compared to direct real estate holdings, enhances their attractiveness to institutional investors [6]. Group 4: Governance and Structural Recommendations - Recommendations for improving the governance mechanism of public REITs include transitioning from external to internal management to ensure better asset management accountability [7]. - The establishment of a joint REITs management platform and the exploration of company-type REITs are suggested to enhance operational efficiency and governance structures [7]. Group 5: Multi-tiered Market Development - The development of a multi-tiered REITs market is essential, encouraging the integration of different asset maturity levels and risk preferences, as well as facilitating the entry of quality asset managers into the public REITs market [8].