Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The report highlights that local policies are actively supporting the issuance of public REITs products, with consumer REITs showing sustained excellent performance. The market is expected to continue benefiting from the downward pressure on bond market interest rates, enhancing the attractiveness of REITs as a high-dividend, low-to-medium risk asset [3][4][5]. Market Overview - As of the 20th week of 2025, the CSI REITs (closing) index stood at 858.96, reflecting a year-on-year increase of 7.51% and a quarter-on-quarter increase of 1.24%. The CSI REITs total return index reached 1076.78, with a year-on-year increase of 14.3% and a quarter-on-quarter increase of 1.39% [5][19]. - Year-to-date, the CSI REITs (closing) index has increased by 13.55%, outperforming the CSI 300 index, which has risen by 13.35%, resulting in an excess return of +0.21% [14]. - The total trading volume in the REITs market reached 562 million shares, a year-on-year increase of 24.34%, while the total transaction value was 2.442 billion yuan, up 30.17% year-on-year [26][31]. Sector Performance - In the 20th week of 2025, the weekly and monthly performance of various REITs sectors was as follows: - Affordable housing: +2.27% (weekly), +3.25% (monthly) - Environmental: -0.32% (weekly), -1.00% (monthly) - Highways: +0.63% (weekly), -0.23% (monthly) - Industrial parks: +2.24% (weekly), -4.36% (monthly) - Warehousing and logistics: +2.65% (weekly), +3.35% (monthly) - Energy: -0.42% (weekly), -3.17% (monthly) - Consumer: +4.34% (weekly), +5.37% (monthly) [37][54]. Active Market Tracking - There are currently 15 REITs funds awaiting listing, indicating a vibrant issuance market. Recent applications include the CICC Jinhe Electronic City Industrial Park REIT and the Huaxia Kaide Commercial REIT [6][12].

Core Viewpoint - The recent surge in large transactions of REITs indicates increased institutional activity in the consumer REIT sector, despite low daily trading volumes in the secondary market [1][2][3]. Group 1: Large Transactions in REITs - On May 15, multiple REITs completed large transactions, including China International Capital Corporation's (CICC) consumer REIT with 2.35 million shares traded for approximately 10 million yuan, reflecting a slight discount to the closing price [3]. - Consumer REITs have frequently appeared in large transactions over the past month, with notable performers like Huaxia Huayun Commercial REIT and CICC Consumer REIT leading the way [3]. - The CSI REITs index has shown an average increase of 8.34% this year, with consumer funds like Huaxia BaiLian Consumer REIT rising by 47.66% [3]. Group 2: Liquidity Challenges - The frequent large transactions highlight liquidity issues in the secondary market for REITs, with CICC Consumer REIT showing significant activity in large trades but low daily trading volumes [5][6]. - The market for public REITs in China is still developing, with a concentrated investor structure leading to significant price impacts from individual institutional trades [6]. - The valuation system for public REITs in China is underdeveloped, which hinders the attraction of new capital and contributes to low overall valuation levels [7]. Group 3: Institutional Investment Trends - Insurance capital is increasingly favoring REITs, with significant allocations to newly listed REITs like the Southern SF Logistics REIT, which received over 200 million yuan from 22 insurance accounts [8]. - The establishment of large-scale public REITs, such as the Beijing Pingzhun Infrastructure REIT with a target size of 10 billion yuan, indicates growing institutional interest [8][9]. - The expansion of the public REITs market is expected to enhance trading activity and attract a broader range of investors, improving market liquidity [9].

Core Viewpoint - The approval of new rental housing REITs in China indicates a rapid development in the sector, with significant potential for investment returns and market growth [1][2][4]. Group 1: New REIT Approvals - Huatai Zijin Suzhou Hengtai Rental Housing REIT and Huaxia Beijing Affordable Housing REIT have received approval for their respective offerings [1][2]. - The Huaxia Beijing Affordable Housing REIT is the first expansion project of its kind in China, reflecting the growing interest in rental housing REITs [2][6]. Group 2: Market Performance and Projections - As of March 9, there are six listed rental housing REITs, with the Huaxia Beijing Affordable Housing REIT expected to enhance returns for investors [2][4]. - The overall issuance scale of rental housing REITs is projected to exceed 25 billion yuan by 2025, driven by the acceleration of new approvals and applications [2][4]. Group 3: Specific Project Details - The Huatai Zijin Suzhou Hengtai Rental Housing REIT's underlying asset is the Jingying Apartment project, valued at 1.261 billion yuan, with projected cash distribution rates of 4.34% and 4.41% for 2025 and 2026, respectively [4][5]. - The Huaxia Beijing Affordable Housing REIT plans to acquire four projects in Beijing, with a total estimated value of approximately 830 million yuan and projected cash distribution rates increasing from 2.70% to 3.13% post-expansion [7][8]. Group 4: Upcoming Listings - The Huatai Zijin Suzhou Hengtai Rental Housing REIT is set to be listed on March 31, becoming the seventh rental housing REIT to be publicly traded [10].

Group 1 - The REITs market experienced a V-shaped trend over the past week, with most sectors achieving profitability, while the consumer sector underperformed, possibly due to concentrated unlocking expectations [5][9]. - After a round of adjustments, the REITs distribution rate and IRR indicators showed slight recovery, with market sentiment remaining relatively strong in the first half of the week [9]. - The overall market trend since the end of 2024 has been driven by a decline in the asset denominator, leading to a comparative advantage, while support from the numerator remains limited [9]. Group 2 - In the past week (February 28 to March 7, 2025), five REITs updated their issuance status, with a total of 63 REITs listed in the domestic market, having a total market capitalization of 179.8 billion yuan and a circulating market value of 78.6 billion yuan [7][8]. - The REITs index overall declined, with the operating rights REITs performing relatively well. Specifically, the CSI REITs (closing) and CSI REITs (total return) changed by 1.14% and 1.19%, respectively [8]. - The trading volume of the REITs market decreased marginally, with the weekly trading volume dropping to 3.665 billion yuan. The average turnover rates for rental housing and energy REITs were relatively high at 1.75% and 1.54%, respectively [22].