1. Report Industry Investment Rating No information provided in the content. 2. Core Viewpoints of the Report - The REITs market continued to decline in the first half of October 2025, with liquidity dropping to a historical low. The IDC sector rose slightly, while the consumer and rental housing sectors led the decline. The market showed a rotational style, and the turnover rate of individual bonds continued to fall [4]. - The valuation of REITs has fallen below the 50th percentile, and the dividend - spread relative to the dividend yield of the CSI Dividend Index has widened. The internal rate of return (IRR) of various assets has increased [4]. - The offline quotes of institutional investors have become more cautious, and the discount rate of the initial offering of REITs has decreased. The difference between the initial offering valuation and the secondary - market valuation has converged [4]. - The China Merchants Shekou Rental Housing REIT will have a large - scale restricted - share lifting, and the operating data of two REITs in Q3 2025 have declined [4]. - The expansion of China Resources Commercial REIT has been accepted, and the valuation of the expansion assets of China Resources Youchao REIT has been lowered by 4.6% [4]. 3. Summary According to the Directory 3.1 Market Continues to Decline with Structural Differentiation, and Liquidity Drops to a Historical Low - **Market Performance**: In the first half of October 2025, affected by external shocks, the CSI 300 fell 0.74%. Due to risk - aversion sentiment, funds flowed into safe assets, causing the CSI Dividend Index to rise 2.91% and commodities to rise 3.83%. The yield of the 10 - year Treasury bond declined, and the bond index showed a warming trend. The CSI REITs Index fell 0.93%, similar to the decline in September [14]. - **Sector Performance**: Only the IDC sector rose (0.10%) in the first half of October, while the consumer (-1.48%) and rental housing (-1.26%) sectors led the decline. The decline of the industrial park and public utilities sectors narrowed compared to September, while the decline of other sectors widened [18]. - **Turnover Rate**: Since September, the trading volume of the Shanghai and Shenzhen REITs markets has decreased. In the first half of October, the average daily turnover rate was 0.29%, reaching a historical low but showing a recovery trend after the holiday. The IDC, warehousing and logistics, and rental housing sectors had relatively high average daily turnover rates, while the consumer sector showed a trend of declining trading volume and price [26]. - **Dividend and Valuation**: As of October 15, 2025, the dividend yield of equity - type REITs was 3.94%. The spread relative to the 10 - year Treasury bond yield was 2.10% (at the 42nd percentile), and the spread relative to the CSI Dividend Index was - 0.52% (at the 70th percentile). The dividend yields of rental housing and public utilities were the only ones below the historical 50th percentile. The valuations of both equity - type and concession - type REITs have fallen below the historical 50th percentile [32]. - **IRR**: The latest IRR of equity - type REITs was 4.1% (at the 56th percentile), and that of concession - type REITs was 3.6% (at the 28th percentile). The IRR of various assets has increased, and the IRR of industrial parks, warehousing and logistics, and IDC has reached above the 50th percentile [39]. 3.2 Offline Institutional Quotes Tend to be Cautious, and the Discount Rate of REITs Initial Offering Declines - **Initial Offerings**: In the first half of October 2025, China Huarong CCB Shenyang International Software Park REIT and China Huarong CCB China Overseas Commercial REIT were issued offline, with issuance scales of 1098 million yuan and 1584 million yuan respectively. As of October 15, 2025, there were 75 listed REITs in Shanghai and Shenzhen, with a total market value of 219.1 billion yuan [43]. - **Subscription Funds**: The issuance scales of the two recent REITs were relatively small, and the average offline top - up subscription funds were 282 million yuan. The offline top - up subscription funds for China Huarong CCB China Overseas Commercial REIT were 333 million yuan, and those for China Huarong CCB Shenyang International Software Park REIT were 231 million yuan [46]. - **Subscription Multiples**: The subscription periods of the two REITs overlapped. China Huarong CCB China Overseas Commercial REIT had a record - high offline effective subscription multiple of 320.47 times, with over 1000 products participating in the offline inquiry. China Huarong CCB Shenyang International Software Park REIT had an offline effective subscription multiple of 83.31 times, with relatively low subscription enthusiasm [51]. - **Quoting Attitudes**: The trend of top - price quoting to "secure participation" has cooled down. 84% and 61% of the products of China Huarong CCB China Overseas Commercial REIT and China Huarong CCB Shenyang International Software Park REIT quoted at the upper limit of the inquiry price respectively. The latter had a record - high concession margin [52]. - **Valuation Difference**: The difference between the initial offering valuation and the secondary - market valuation has converged. The predicted dividend yields of China Huarong CCB Shenyang International Software Park REIT and China Huarong CCB China Overseas Commercial REIT in 2026 were 5.24% and 4.21% respectively, with differences of 0.45 pcts and 0.32 pcts compared to comparable REITs [62]. - **Subscription Rate and Listing Performance**: Affected by the lower offline quotes, the participation rates of the two REITs have declined. The offline winning rate of China Huarong CCB Shenyang International Software Park REIT reached 1.2%. The increase in the listing price of REITs has narrowed, and in September, the average increase on the first listing day and the cumulative increase in the first four trading days of newly - listed REITs decreased [66][73]. - **Subscription Yield**: Excluding extreme values, from January to September 2025, the absolute returns of 50 million yuan and 100 million yuan of funds participating in the offline subscription of REITs were 1.7484 million yuan and 3.4967 million yuan respectively, corresponding to an offline yield of 3.50% [74]. 3.3 Shekou Rental Housing REIT to Have a Large - Scale Restricted - Share Lifting, and the Operating Data of Two REITs in Q3 Decline - **Dividend and Operating Data**: Three REITs announced dividend plans, and the operating data of two REITs in Q3 2025 declined. The average daily natural traffic volume of E Fund Shenzhen Expressway REIT in Q3 2025 decreased by 20.43% year - on - year, and the power generation, on - grid electricity, and settlement electricity of CITIC Construction Investment State Power Investment New Energy REIT decreased by 24.66%, 24.85%, and 25.90% respectively [77][79]. - **Restricted - Share Lifting**: China Merchants Shekou Rental Housing REIT will lift restrictions on 48% of its total shares on October 23, 2025. After the lifting, the tradable shares will account for 75% of the total shares. The public offering of China Huarong CCB Shenyang International Software Park REIT and China Huarong CCB China Overseas Commercial REIT ended ahead of schedule, and Guotai Junan Dongjiu New Economy REIT held a general meeting of fund unit holders for its expansion project [84]. 3.4 China Resources Commercial REIT Expansion Accepted, and the Valuation of China Resources Youchao REIT Expansion Assets Lowered - **Queuing Projects**: In the first half of October 2025, the expansion of China Resources Commercial REIT was accepted, and China Resources Youchao REIT announced the feedback response materials for its expansion. As of October 15, 2025, there were 9 initial offering projects in the queue, and China AMC Anbo Warehousing and Logistics REIT has been registered [89]. - **Asset Valuation**: The latest assessment value of the expansion assets of China Resources Youchao REIT was 989 million yuan, a decrease of 4.6% compared to the application draft. The expansion of China Resources Commercial REIT was accepted, and the assessment value of its new assets was 2.444 billion yuan [93]. - **Valuation Pressure in the Under - Review Projects**: The assessment value of the expansion assets of China Resources Youchao REIT has a relatively large downward pressure among similar assets. The rental housing of the Youchao Maqiao project has high occupancy and relatively low rent [94]. - **Tendering and Potential Projects**: In late September and the first half of October 2025, Lanzhou High - tech Investment (Holding) Group Co., Ltd. publicly tendered for a financial advisor for the issuance of a public REIT for the Lanzhou National Biomedical Industry Base Innovation Park [99].