Core Viewpoint - The announcement by the China Securities Regulatory Commission to include commercial real estate in the public REITs pilot program marks a significant development, expanding the asset scope of public REITs and providing new avenues for revitalizing office buildings, hotels, and other commercial properties [1] Group 1: Market Expansion and Asset Types - The public REITs market has shown significant changes over the past few years, with a diversification of underlying asset types from industrial parks and affordable rental housing to now include office buildings and hotels [2] - The market is expected to continue growing, with predictions indicating that 2026 will be a year of high growth for public REITs, driven by the increasing recognition and participation of more funds and issuers [2] - The issuance of public REITs remains cautious, focusing on assets with stable cash flows and compliance, emphasizing the importance of historical occupancy rates and income stability [2] Group 2: Challenges and Opportunities in Commercial Assets - Different types of commercial assets present varying levels of issuance difficulty, with hotels requiring higher operational management standards due to their sensitivity to economic cycles and higher operational costs [3] - Core cities are seen as having a distinct advantage in the REITs market due to their economic activity and population inflow, which contribute to stable operational performance [3] Group 3: Operational Efficiency and Market Growth - REITs enhance asset transparency and operational efficiency, with mandatory quarterly disclosures and annual comprehensive reports, which compel management to adopt more refined operational practices [4] - The ability to expand through additional fundraising is linked to improved operational performance, creating a positive feedback loop that encourages better asset management [4] - The overall scale of public REITs has surpassed 200 billion yuan, with potential growth towards a trillion yuan market size if the market share increases to 1.5% [4][5] Group 4: Investment Strategies and Market Dynamics - The differentiation of REITs products is becoming evident as the market expands, posing challenges for investors to select high-performing and stable REITs [5] - REITs ETFs are emerging as a means to lower investment thresholds and facilitate risk diversification, enhancing overall market liquidity [5] - The influence and attractiveness of public REITs in the capital market are expected to grow, supporting the development of new real estate models and improving the effectiveness of multi-tiered capital markets in serving the real economy [5]

Investment Rating - The report does not provide a specific investment rating for the REITs industry [2] Core Insights - The REITs index experienced a decline of 0.36% this week, while the Shanghai Composite Index fell by 0.57% and the CSI 300 Index decreased by 0.57% [5][20] - The report highlights the correlation of REITs with various indices, showing a correlation of 0.23 with 10-year government bonds, 0.07 with 1-year government bonds, and 0.65 with convertible bonds [20] - The report emphasizes the strong allocation attributes of REITs in a stable economic environment, suggesting investors pay attention to sector rotation and expansion opportunities [9] Industry Overview - The REITs industry consists of 78 listed companies with a total market capitalization of 2,199.24 billion yuan and a circulating market capitalization of 1,230.12 billion yuan [2] - The report notes significant events, including the listing of additional shares for 华夏华润有巢 REIT on January 12 and 中航京能光伏 REIT on January 15 [12] Market Performance - The trading volume for the week was 2.44 billion yuan, representing a decrease of 25.3%, with an average turnover rate of 0.4% [35] - The report details the performance of various REIT sectors, with significant declines in trading volumes for highways (-36.6%) and consumption (-37.5%), while ecological environmental REITs saw an increase of 13.4% [35] Valuation Situation - The estimated yield for bonds ranged from -0.31% to 10.93%, with 平安广州广河 having the highest yield at 10.93% and 创金合信首农 the lowest at -0.31% [37] - The P/NAV ratio for the REITs is reported to be between 0.73 and 1.79, with 嘉实物美消费 having the highest P/NAV at 1.79 and 华夏中国交建 the lowest at 0.73 [37]

Core Insights - "Guotai Junan Dongjiu REIT" has maintained a strong premium rate in the secondary market since its listing, reaching 21.52% as of December 22, 2025, despite a projected decline in rental rates and occupancy in 2025 [1][2] - The REIT plans to expand its shares on December 26, 2025, with a pricing of 3.582 CNY per share, reflecting an 18.02% premium over the initial offering price [1] Performance Summary - The occupancy rate of "Guotai Junan Dongjiu REIT" has remained above 95% from October 2022 to 2024, but is expected to decline in 2025, with a minimum occupancy rate of 94.62% and an average of 93.61% [2] - The latest rental price is 30.34 CNY per square meter per month, which is a 3.1% decrease compared to the first year of listing, despite a projected growth rate of 3%-5% [2] - The actual operating income for 2024 is reported at 10,905.74 million CNY, with a net operating profit of 5,118.36 million CNY, indicating a discrepancy between forecasted and actual performance [2] Expansion Discussion - The secondary market price of REITs is closely linked to performance completion rates, with "Guotai Junan Dongjiu REIT" showing resilience with only a 1.24% decline during a volatile period from October 31 to December 19, 2025 [3] - Historical data indicates that REITs with high secondary market premiums often see their prices drop below the expansion issue price shortly after the expansion [5] Asset and Capital Value - The expansion of REITs during favorable market conditions can enhance the enthusiasm of sponsors and investors, but the actual performance completion rates can significantly impact market prices [6] - For "Guotai Junan Dongjiu REIT," there is a notable difference between predicted and actual performance metrics, which raises concerns about the sustainability of asset values [6] - In 2023, actual operating income exceeded predictions by 831.56 million CNY, while operating costs decreased by 3,220.2 million CNY, indicating a complex relationship between forecasted and realized financial outcomes [6] Conclusion - Given the current performance trends and market conditions, it is likely that "Guotai Junan Dongjiu REIT" may experience a decline below the expansion issue price post-listing [7]

Core Viewpoint - The announcement by Huaxia Fund regarding the first expansion of the Huaxia Fund Huayun Rental Housing Closed-End Infrastructure Securities Investment Fund (REIT) for 2024 marks the commencement of the fundraising phase, allowing original shareholders to subscribe for additional shares under specific conditions [1][14]. Group 1: Fund Details - The fund is officially named "Huaxia Fund Huayun Rental Housing Closed-End Infrastructure Securities Investment Fund" and is abbreviated as "Huaxia Fund Huayun REIT" [1][15]. - The total number of fund shares available for subscription is 500 million, with 450 million shares available for allocation to original shareholders at a ratio of 0.9 shares for every 1 share held [2][16]. - The subscription price for the fund is set at 2.53 yuan per share, determined based on market factors [3][16]. Group 2: Fundraising Scale - The total amount to be raised through this expansion is expected to be between 9.915 billion yuan and 11.400 billion yuan, with a projected total of 11.385 billion yuan if all original shareholders fully subscribe [3][17]. Group 3: Subscription Process - The subscription period is from December 8, 2025, to December 12, 2025, during which original shareholders can participate through both on-market and off-market channels [6][21]. - Minimum subscription amounts are set at 1 yuan for both on-market and off-market subscriptions, with specific rules applicable based on the sales institutions [5][20]. Group 4: Underlying Assets - The fund plans to acquire the "Youchao Majiao" project located in Minhang District, Shanghai, which is a demonstration project for affordable rental housing, having opened in March 2023 [10][26]. - The underlying assets also include the "Youchao Sijing" and "Youchao Eastern Economic Development Zone" projects, which are significant examples of the city's efforts to promote affordable rental housing [10][28].

1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoints of the Report - The expected fair - value range of the Youchao Maqiao project is between RMB 828 million and RMB 1.039 billion, with a difference of - 16.32% to 5.05% compared to the disclosed appraisal value [2]. - After the expansion, the neutral Cap Rate of China Resources Youchao REIT in 2025 is expected to reach 3.37%, second only to Chengtou Kuanting and China Merchants Shekou Leasing. The neutral IRR is expected to be 4.8%, a 0.26 - percentage - point increase compared to before the expansion [2]. - The predicted distribution yields of China Resources Youchao REIT after the expansion in 2025 and 2026 are 3.30% and 3.34% respectively, which are 4.96% and 6.50% higher than before the expansion, and 11.00% and 15.63% higher than comparable REITs [2]. 3. Summary According to the Table of Contents 3.1 Basic Issuance Elements - The expansion of China Resources Youchao REIT was registered and became effective on October 28, 2025. A fund - holder meeting is scheduled from November 15 to 28, 2025, to vote on matters such as the expansion, adjustment of fund management fees, and extension of the fund contract [6]. - The expansion will be sold by allotment to original holders, with a planned issuance of no more than 550 million shares, and a planned issuance scale of RMB 991.5 million to RMB 1.14 billion. The expected issuance price per share is between RMB 1.803 and RMB 2.073 [6][8]. - A negative - incentive mechanism has been added to the incentive service fee, and the upper limit of positive and negative incentives is set. When the actual net operating income is lower than the target, the corresponding amount of the basic service fee will be deducted [7]. 3.2 Introduction to Underlying Basic Assets 3.2.1 Scattered Rental Supply in Maqiao, AI Industry Drives Demand Growth - The Youchao Maqiao project is a single - building affordable rental housing project in Minhang District, Shanghai, with a total construction area of 107,230.20 square meters, which opened in March 2023 [10]. - The rental housing supply in Maqiao is mainly scattered, and community - type supply is scarce. The "Two Old and One Village" renovation during the 14th Five - Year Plan period will supply over 7,400 affordable rental housing units and 3,000 beds [12]. - The project is close to the Shanghai AI Pilot Zone and high - tech manufacturing belt. New enterprises' settlement will drive the rental demand. As of the end of 2024, the rental population in Shanghai accounted for 40% of the permanent population, and the potential demand for affordable rental housing exceeded 4.5 million units [13]. 3.2.2 Mainly One - Bedroom Units with Various Types, Rich Community Services through Government - Enterprise Collaboration - The project has 2,483 rental housing units (2,475 available for rent), mainly one - bedroom units, supplemented by two - bedroom and one - room - one - hall units. There are also dormitory units for front - line workers [16]. - The project has a short opening time, high - quality decoration, and a rich community ecosystem. It has indoor and outdoor shared spaces, commercial facilities on the ground floor, and 776 underground parking spaces [22]. - The project is close to Metro Line 5, with a bus stop at the entrance and shuttle - bus service. It has jointly built community service stations such as canteens with the government [22]. 3.2.3 Obvious Rent Advantage, Poor Commercial and Public Transport Facilities - Compared with three comparable projects within 5 kilometers, the Youchao Maqiao project has a larger housing supply. The monthly rent of its one - bedroom units is between RMB 1,500 and RMB 2,800, lower than that of comparable projects [23]. - The commercial and public - transport facilities of comparable projects are more complete. The main customer groups of the project are similar to those of comparable projects, mainly white - collar workers in surrounding industrial parks and along the subway line, and also include front - line workers due to the dormitory units [24]. 3.2.4 Backed by Well - known Real - Estate Developer China Resources Land, Leading in Apartment Management among Central Enterprises - The original equity holder of China Resources Youchao REIT is Youchao Housing Leasing (Shenzhen) Co., Ltd., whose sole controlling shareholder is China Resources Land Holdings Co., Ltd. [26]. - As of the end of June 2025, Youchao Shenzhen was involved in 51 operating projects in 15 cities, with 18 reserve projects and 85,000 housing units, ranking first among central enterprises in apartment management [29]. - Due to high initial investment, Youchao Shenzhen has not yet achieved profitability. However, its gross profit margin has been increasing year by year, reaching 16.12% in the first half of 2025 [32]. 3.3 Operating Conditions of Underlying Basic Assets 3.3.1 Entered Stable Operation Stage, Profit Margin Lower than Comparable Projects - From 2022 to 2024 and the first half of 2025, the operating income of the Youchao Maqiao project increased year by year, reaching RMB 29.4424 million in the first half of 2025. The net profit turned positive in 2024 [38]. - In 2023, the net profit was negative due to low rental income during the climbing period and high costs. Since 2024, as the project entered the stable operation stage, the operating income and EBITDA increased significantly, and the net profit turned positive [38]. - From 2024 to the first half of 2025, the profit margin of China Resources Youchao REIT (expansion) was lower than the average of comparable REITs and the initial - offering assets [43]. 3.3.2 High Occupancy Rate after Climbing, Stable Rent Collection Rate above 99% - From 2023 to 2024 and the first half of 2025, the weighted average occupancy rate of the Youchao Maqiao project was 38.2%, 90.6%, and 92.9% respectively. Since 2024, the occupancy rate has been stable and above 90% [46]. - The occupancy rate of China Resources Youchao REIT (expansion) at the end of 2024 and the first half of 2025 was higher than the average of comparable REITs and the initial - offering assets [53]. - The rent collection rate of China Resources Youchao REIT (expansion) at the end of 2024 and the first half of 2025 was higher than the average of comparable REITs and the initial - offering assets [55]. 3.3.3 High Cost - Performance Rent for One - Bedroom and Dormitory Units, Decline in New - Signed Rent for One - Bedroom Units in H1 2025 - As of June 30, 2025, the average contract rent per square meter of the Youchao Maqiao project was RMB 69.80, a 37.12% discount compared to the market average [57]. - The rent of one - bedroom and dormitory units in the project has an obvious advantage compared to the surrounding area. However, the new - signed rent for all housing types in the first half of 2025 decreased by 0.32% compared to the end of 2024, especially for the main one - bedroom units [58][62]. - The rent - discount policy covers most tenants, and the total discount amount accounts for about 19% of the rent income [63]. 3.3.4 Customer Groups Targeted at Surrounding Industrial Parks, Enterprise Tenants Mainly from Research Institutions - As of June 30, 2025, the rental - area ratio of individual and enterprise tenants in the Youchao Maqiao project was 80.86% and 19.14% respectively [64]. - Among enterprise tenants, research and technology service institutions accounted for the highest proportion. The top five enterprise tenants accounted for 8.57% of the rental area and 9.41% of the rent income [64][65]. - Among individual tenants, nearly 60% work within 5 kilometers of the project. Benefiting from talent introduction, the proportion of tenants with a postgraduate degree or above is 43% [69]. 3.3.5 Continuous Optimization of Lease - Term Structure, Faster Vacancy Filling and Higher Renewal Rate - The lease terms of the Youchao Maqiao project are generally one - year. As of June 30, 2025, the average lease term was 11.45 months, and the leases with terms of 12 and 13 months accounted for 78.02% [72]. - The overall renewal rate in the first half of 2025 exceeded 40%, and the average vacancy - filling time in 2024 and the first half of 2025 was 24.92 days and 18.85 days respectively [72]. 3.4 Valuation Analysis 3.4.1 Expected Fair Value of Youchao Maqiao Project between RMB 828 million and RMB 1.039 billion - Under the neutral scenario, it is assumed that from 2025 to 2034, the rent growth rate, occupancy rate, and rent collection rate of the Youchao Maqiao project are set according to different stages [78][79][80]. - The expected fair - value range of the project is between RMB 828 million and RMB 1.039 billion, with a difference of - 16.32% to 5.05% compared to the disclosed appraisal value of RMB 989 million [99]. 3.4.2 Neutral IRR after Asset Combination is 4.8%, a 0.26 - percentage - point Increase compared to before the Expansion - Under the neutral scenario, the IRR of the Youchao Maqiao project is 5.14%, and the overall IRR after asset combination is 4.80%, a 0.26 - percentage - point increase compared to before the expansion [100]. - Before the expansion, the IRR of China Resources Youchao REIT was second only to Chengtou Kuanting. After the expansion, it is higher than all affordable - rental - housing REITs [101]. 3.4.3 Capitalization Rate in 2025 after Asset Combination is 3.37%, a 0.2 - percentage - point Increase compared to before the Expansion - Under the neutral scenario, the capitalization rates of the Youchao Maqiao project in 2025 and 2026 are 3.64% and 3.71% respectively. The overall capitalization rates after asset combination are 3.37% and 3.51% respectively, with an increase of 0.20 and 0.15 percentage points compared to before the expansion [103]. - Before the expansion, the capitalization rate of China Resources Youchao REIT was at a medium level. After the expansion, it is second only to Chengtou Kuanting and China Merchants Shekou Leasing [104]. 3.4.4 Distribution Yield in 2025 after Asset Combination is 3.30%, a 5% Increase compared to before the Expansion - The expected distribution yields of the Youchao Maqiao project in 2025 and 2026 are 3.51% - 4.03% and 3.61% - 4.15% respectively. The overall expected distribution yields after asset combination are 3.30% - 3.49% and 3.34% - 3.53% respectively, with an increase of 4.96% - 11.13% and 6.50% - 12.77% compared to before the expansion [108]. - After the expansion, the predicted distribution yields of China Resources Youchao REIT in 2025 and 2026 are 11.00% - 17.54% and 15.63% - 22.44% higher than those of comparable affordable - rental - housing REITs [108].

Core Viewpoint - The article discusses the rapid development and expansion of public REITs in China, highlighting their role in transforming real estate into standardized and liquid financial products, and the supportive policies from the government to enhance the market [1][4]. Group 1: Market Expansion and Development - As of now, there are 77 public REITs listed in China, with a total market capitalization exceeding 220 billion yuan [4]. - The National Development and Reform Commission's recent notification supports the normalization of public REITs applications, injecting new momentum into the market [1][4]. - The public REITs market in China is still in its early stages compared to mature markets like the US and Japan, but it has already shown positive impacts on project financing and effective investment expansion [4]. Group 2: Importance of REITs Expansion - Industry leaders emphasize that the expansion of public REITs is not merely about increasing scale but is crucial for creating a sustainable market that enhances long-term value [5]. - The expansion of REITs can effectively diversify asset risks and improve expected returns, making it a key focus for companies in the sector [5][6]. - Historical data from mature markets indicate that the expansion scale of REITs often far exceeds initial public offerings, suggesting a significant growth potential for China's REITs market [5][6]. Group 3: Operational Excellence and Asset Management - High-level asset management is essential for the healthy development of REITs, requiring companies to demonstrate refined operational capabilities and risk management [6]. - Companies that manage stable underlying assets and can withstand industry cycles tend to gain higher investor recognition, paving the way for future expansions [6]. - The ability to maintain high occupancy rates and optimize rental levels is critical for the operational quality of underlying assets, with some companies achieving occupancy rates above 99% [7].

Core Insights - The article discusses the current opportunities for the domestic REITs market in China, emphasizing the importance of enhancing the investment and financing cycle through the expansion and quality improvement of public REITs [1][3]. Group 1: Market Expansion and Policy Support - The number of publicly listed REITs in China has reached 77, with a total market capitalization exceeding 220 billion yuan [3]. - The National Development and Reform Commission (NDRC) has issued a notice to support the normalization of REITs applications in the infrastructure sector, providing new policy guidance and continuous momentum for market expansion [1][3]. - The REITs market in China is still in its early stages compared to mature markets in Europe, the U.S., and Japan, but it has already shown positive impacts on project financing channels and effective investment [3]. Group 2: Importance of Asset Management - High-level asset operation is crucial for the healthy development of REITs, requiring companies to enhance their operational capabilities and risk management [6]. - Companies that can demonstrate stable asset management and resilience to industry cycles are likely to gain higher investor recognition [6]. - The focus on maintaining high occupancy rates and optimizing rental levels is essential for stabilizing the asset base of REITs [6]. Group 3: Perspectives from Industry Leaders - Leaders from various companies, such as Anhui Communications Investment Group and Dongjiu Industrial Real Estate Investment Co., have expressed strong interest in the expansion of REITs, highlighting its role in revitalizing existing assets and funding new projects [4][5]. - The expansion of REITs is seen as a critical mechanism for risk diversification and enhancing asset yield expectations [5]. - The experience from international markets indicates that the scale of REITs expansions often surpasses initial public offerings, suggesting a positive trend for the future of China's REITs market [5][6].

Report Industry Investment Rating - Not provided in the given content Core Views - REITs financing can be divided into debt - raising and share - issuing, with share - issuing further split into IPO and expansion. From 2001 to July 2025, in the US REITs market, the average proportions of debt - raising, expansion, and IPO were 49%, 47%, and 4% respectively. China's REITs have a lower leverage ratio cap (29%) than overseas markets, making expansion a more suitable financing form for China's REITs. All implemented expansions in China's REITs so far are private placements of common shares, mainly used for asset purchases [2]. - China's REITs expansion regulatory system consists of the CSRC, exchanges, and the NDRC, and the approval and issuance process takes about 9.7 months. Four important rules for investors in REITs expansion are: 1) After IPO, for newly purchased assets, projects of the same original equity holder should generally be listed through the same REITs platform, with no scale requirement for asset valuation. 2) REITs can apply to the exchange for new asset purchases only after being listed for 12 months. 3) The pricing of public expansion should not be lower than the market price, and that of private expansion should not be lower than 90% of the market price. 4) The lock - up period of expansion shares is about half of that of IPO, with a minimum of 6 months [2]. - The value of expansion assets is slightly weaker than that of IPO assets, and their valuation is also lower. The median ratio of expansion asset valuation to IPO asset valuation is 64%. In terms of asset quality, the scale, geographical level, and profitability of expansion assets are relatively inferior to those of IPO assets. The Cap Rate of expansion assets is 0.28 - 0.61 pct higher than that of IPO assets, indicating that investors require a higher return for expansion assets of lower quality [3]. Summary by Directory 1. Expansion is One of the Main Financing Forms of REITs - REITs financing includes debt - raising, IPO, and expansion. In overseas markets, debt - raising and expansion are the main financing forms, with IPO accounting for a relatively small proportion. From 2001 to July 2025, the average proportions of debt - raising, expansion, and IPO in the US REITs market were 49%, 47%, and 4% respectively. In 2024, the amounts of debt - raising, expansion, and IPO in the US REITs were $48.1 billion, $30.5 billion, and $6.1 billion respectively, accounting for 57%, 36%, and 7%. China's lower leverage ratio cap (29%) makes expansion a more suitable financing form for its REITs [10]. - Overseas, expansion funds can be used for debt repayment and asset purchase. Expansion and other external financings of REITs can be used to pay off debts and acquire assets. Debt repayment can optimize the debt structure during interest - rate decline periods or reduce the leverage ratio when the REITs' debt ratio is too high. Asset purchase often relies on external financing due to the low fund retention rate of REITs. Although expansion for asset - purchase purposes is relatively infrequent, it involves larger financing volumes [12]. - China's REITs financing forms and uses are relatively single. As of September 19, 2025, all 6 REITs expansions in China were private placements of common shares, mainly used for asset purchases, and no expansion for debt - repayment purposes has been seen [16]. 2. Expansion Supervision and Process - China's REITs expansion regulatory system is composed of the CSRC, exchanges, and the NDRC. The rules of the Shanghai and Shenzhen Stock Exchanges are the most direct and comprehensive guidelines for current REITs expansion practices. Important rules for investors include: newly purchased assets of the same original equity holder should generally be listed through the same REITs platform after IPO, with no scale requirement for asset valuation; REITs can apply for new asset purchases after 12 months of listing; public expansion pricing should not be lower than the market price, and private expansion pricing should not be lower than 90% of the market price; the lock - up period of expansion shares is about half of that of IPO, with a minimum of 6 months [19][22][27]. - Referring to existing expansion experiences, the whole process takes about 9.7 months. The longest time - consuming stage is from the exchange's feedback to the issuer's response, with an average of 3.4 months. The time from the exchange's acceptance to the inquiry is highly uncertain, ranging from 0.8 to 12.6 months. After the issuer's response, the issuance rhythm is relatively controllable. Currently, there are 11 projects awaiting expansion, mainly in the affordable housing, industrial park, and consumer sectors [28][29][31]. 3. Comparison between Expansion Assets and Initial Public Offering (IPO) Assets - The value of expansion assets is slightly lower than that of IPO assets, and their quality is also weaker. The median ratio of expansion asset valuation to IPO asset valuation is 64%. In terms of asset quality, the scale, geographical level, and profitability of expansion assets are relatively inferior to those of IPO assets, while there is no obvious difference in the remaining term of sub - sectors [37]. - The valuation of expansion assets is lower than that of IPO assets. The Cap Rate of expansion assets is generally higher than that of IPO assets, ranging from 0.28 pct to 0.61 pct higher, indicating that investors require a higher return for expansion assets of lower quality [43].

Core Viewpoint - China Resources Commercial REIT is expected to complete its expansion by the end of 2025, following the submission of its expansion share listing application to the Shenzhen Stock Exchange and the recent policy changes that facilitate quicker expansion processes [1][2]. Group 1: Expansion Application and Policy Support - China Resources Commercial REIT submitted an application for expansion share listing to the Shenzhen Stock Exchange, with the first expansion planned for 2025 [1]. - The National Development and Reform Commission (NDRC) has reduced the expansion threshold for infrastructure REITs from 12 months to 6 months, allowing for a faster application process [1][2]. - The NDRC will prioritize recommending expansion projects that meet certain conditions, particularly those with high net recovery fund scales, indicating strong policy support for the expansion of China Resources Commercial REIT [2]. Group 2: Market Performance and Investor Sentiment - The market performance of China Resources Commercial REIT is influenced by fluctuations in the stock and bond markets, with a notable increase in related REITs, such as Huaxia Fund's "Wochao," which rose by 2.2% in early September 2025 [3]. - The ongoing expansion application process is likely to enhance market attention and recognition for China Resources Commercial REIT, especially given the focus on REITs with stable rental income and good asset quality [3].

1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoints of the Report - The REITs expansion business rules have been further improved, and the Dujiangyan Scenic Area REITs project was successfully bid. The Shanghai Stock Exchange issued the "REITs Expansion Business Handling Guide", and the Shenzhen Stock Exchange also enabled the non - targeted expansion business function. The Huaxia Anbo Warehouse Logistics REIT's application status was updated to "accepted", and AVIC Fund won the bid for the Dujiangyan Scenic Area REITs project [4]. - In the primary market, 4 single - issue REITs made new progress this week, and the issuance scale decreased year - on - year. In the secondary market, the market rebounded with fluctuations this week, and the liquidity continued to rise [5]. 3. Summary According to the Table of Contents 3.1 Primary Market: 4 Single - Issue REITs Made New Progress - As of July 4, 2025, 10 REITs have been successfully issued this year, with a total issuance scale of 15.35 billion yuan, a year - on - year decrease of 43.8%. This week, 4 single - issue public REITs made new progress, and there was no new progress in expansion [5]. - There are currently 15 single - issue REITs under application, 5 have been queried and responded, 0 have passed the review, and 1 is registered and awaiting listing. For expansion, 10 have been applied, 4 have been queried and responded, and 3 have passed the review [5]. 3.2 Secondary Market: The Market Rebounded with Fluctuations This Week, and the Liquidity Continued to Rise 3.2.1 Market Review: The CSI REITs Total Return Index Rose 0.66% - This week, the CSI REITs Total Return Index (932047.CSI) closed at 1116.42 points, up 0.66%, underperforming the CSI 300 by 0.88 percentage points and the CSI Dividend by 1.28 percentage points. The year - to - date increase of the CSI REITs Total Return Index is 15.35%, outperforming the CSI 300/CSI Dividend by 14.15/16.43 percentage points [5]. - By project attribute, property - type REITs rose 0.42%, and franchise - type REITs rose 1.05%. By asset type, the transportation (+1.29%), ecological environment protection (+1.08%), park (+0.83%), and energy (+0.60%) sectors performed better [5]. - Among individual bonds, 55 rose and 13 fell this week. CICC China Greentown Commercial REIT (+6.50%), E Fund Huayi Farmers' Market REIT (+5.25%), and Huaxia Nanjing Transportation Expressway REIT (+3.91%) led the gainers, while Huaxia TBEA New Energy REIT (-2.09%), Huaxia Beijing Affordable Housing REIT (-1.70%), and Guotai Junan Lingang Innovation Industrial Park REIT (-1.55%) were the biggest losers [5]. 3.2.2 Liquidity: The Ecological Environment Protection Sector Had the Highest Activity - The average daily turnover rate of CSI REITs this week was 0.62%, an increase of 3.94BP from last week. The average daily turnover rates of property - type/franchise - type REITs this week were 0.78%/0.63%, an increase of 16.46/1.69BP from last week. The trading volumes during the week were 569 million/170 million shares, a week - on - week increase of 28.49%/9.15%. The ecological environment protection sector was the most active [5]. 3.2.3 Valuation: The Energy Sector Had a Higher Valuation - According to the ChinaBond valuation yield, the yields of property - type/franchise - type REITs were 3.77%/3.94% respectively. The warehouse logistics (5.12%), transportation (5.09%), and park (4.70%) sectors ranked among the top three [5]. 3.3 This Week's News and Important Announcements - **This Week's News**: On June 27, the Shanghai Stock Exchange issued the "REITs Expansion Business Handling Guide", and the Shenzhen Stock Exchange also enabled the non - targeted expansion business function. On June 30, the application status of Huaxia Anbo Warehouse Logistics REIT was updated to "accepted". On July 4, AVIC Fund won the bid for the Dujiangyan Scenic Area REITs project [4][31]. - **Important Announcements**: Multiple REITs released expansion, listing, and operation data announcements, including Guotai Junan Lingang Innovation Industrial Park REIT, CICC China Greentown Commercial REIT, etc. [32]