Core Viewpoint - The National Development and Reform Commission (NDRC) has issued a notice to accelerate the regular application and recommendation of infrastructure Real Estate Investment Trusts (REITs), aiming to expand the market and promote new asset types [1][2]. Group 1: Current Market Status - As of the end of August, China has successfully listed 73 infrastructure REITs, with a total issuance scale of 198.6 billion and a total market value of 218.8 billion [2]. - The listed infrastructure REITs cover various asset types, including transportation, energy, heating, ecological protection, logistics, industrial parks, data centers, rental housing, water conservancy, and consumer infrastructure, making it the largest public REITs market in Asia [2]. Group 2: Future Development Plans - The notice emphasizes the need to accelerate the application of mature asset types such as toll roads, clean energy, and rental housing, while also increasing efforts for potential asset types like heating, water conservancy, and data centers [2][4]. - There is a strong push to explore new asset types for REITs, including railways, ports, and cultural tourism, to meet the urgent financing needs of related enterprises [4][6]. Group 3: Regional Performance - Beijing has issued 13 REITs, raising over 31.1 billion, and has a diverse industry coverage, while Shanghai has listed 9 projects with total fundraising of 17 billion [3][5]. - Both cities are actively working to strengthen project reserves and encourage market participants to submit applications continuously [4][6]. Group 4: Support for Private Investment - The notice encourages the issuance of REITs for private investment projects, which can provide efficient and low-cost financing, significantly benefiting the development of the private economy [6][7]. - The NDRC will prioritize recommending projects with a high proportion of net recovery funds relative to the total fund amount, ensuring a balance between innovation and risk [6][7].

Report Summary 1. Industry Investment Rating No information provided in the report regarding the industry investment rating. 2. Core Viewpoints - From August 1 - 15, 2025, the Shanghai and Shenzhen REITs continued the trend of declining with shrinking volume. The CSI REITs Total Return Index fell 1.9%, underperforming the 300 Index return and the CSI Dividend Total Return Index. The liquidity further contracted, with the average daily turnover rate narrowing by 0.06 percentage points compared to July to 0.5%. All types of REITs declined, with only warehousing logistics (-0.7%) and energy (-0.7%) showing relative resilience [3]. - The valuations of all types of REITs were generally downgraded, and the internal rate of return (IRR) generally increased. The P/NAV of equity - type REITs was at the 58% quantile (down 14 points from the end of July), and the P/FFO of concession - type REITs was at the 62% quantile (down 11 points from the end of July). The IRR quantile values of all types of REITs increased, with energy (+17pcts) and affordable housing (+14pcts) showing significant increases [3]. - The dividend spread of equity - type REITs relative to the CSI Dividend reached the 74% historical high, highlighting the allocation cost - effectiveness. The dividend payout rate quantiles of consumer REITs and industrial park REITs improved significantly [3]. - Two IDC REITs hit the daily limit on their listing days, and the offline new - share subscription yield for REITs in 2025 exceeded 3%. As of August 15, after excluding the extreme value of AVIC Yicang REIT, the offline new - share subscription returns for 0.5 billion/1 billion RMB cash accounts in 2025 totaled 167/334 million RMB, with an offline subscription yield of 3.34% [3]. 3. Summary by Directory 3.1 Near - half - month Decline with Shrinking Volume Continues, and Dividend Spread Relative to Dividends Reaches a High Again - **Market Performance**: From August 1 - 15, the CSI REITs Total Return Index fell 1.9%, underperforming the 300 Index return by 5.1 percentage points. All types of REITs generally declined, with affordable housing REITs falling 3.4%, consumer REITs having a deep correction of 3.2% (the largest monthly decline in 2025), and industrial park, public utilities, and highway REITs falling 2.5%, 2.4%, and 2.1% respectively, with the decline rates expanding compared to July [3][6]. - **Valuation and Yield**: The valuations of all types of REITs were downgraded. The P/NAV of equity - type REITs was at the 58% quantile (down 14 points from the end of July), and the P/FFO of concession - type REITs was at the 62% quantile (down 11 points from the end of July). The IRR of all types of REITs increased, with energy and affordable housing showing significant increases. The dividend spread of equity - type REITs relative to the CSI Dividend reached the 74% historical high, and the dividend payout rate quantiles of consumer and industrial park REITs improved significantly [3]. 3.2 Digital Infrastructure REITs Financing Approved, Three Newly - Issued REITs to be Unlocked in the Second Half of the Month - **Policy Support**: On August 5, 2025, seven departments including the People's Bank of China issued the "Guiding Opinions on Financial Support for New - type Industrialization", supporting the use of real - estate investment trusts (REITs) to expand the sources of funds for digital infrastructure construction [37]. - **Project Status**: As of August 15, there were 10 newly - issued and 4 expansion - offering projects under review at the exchanges, and 1 newly - issued and 1 expansion - offering project had been approved by the CSRC. China Merchants Vipshop Outlet Mall REIT will be publicly offered from August 20 - 21. Recently, five REITs including Bailian Consumer, Capital Mall, Xiamen Affordable Housing, Shenzhen Affordable Housing, and Beijing Affordable Housing will be unlocked [39][41]. 3.3 Two IDC REITs Hit the Daily Limit on Their Listing Days, and the Offline New - Share Subscription Yield in 2025 Exceeds 3% - **New Listings**: As of August 15, the total number of listed REITs on the Shanghai and Shenzhen exchanges reached 73, with a total market value of 219 billion RMB. Three new REITs were listed in the first half of August (including two IDC and one energy REIT), with an issuance scale of 8.8 billion RMB. The two IDC projects hit the 30% daily limit on their listing days and continued to rise within three days of listing [53]. - **Offline New - Share Subscription Yield**: As of August 15, after excluding the extreme value of AVIC Yicang REIT, the offline new - share subscription returns for 0.5 billion/1 billion RMB cash accounts in 2025 totaled 167/334 million RMB, with an offline subscription yield of 3.34%. There were no newly - issued unlocking projects in the first half of August (based on a 12 - month lock - up period) [57].

1. Report Industry Investment Rating There is no information provided regarding the industry investment rating in the document. 2. Core View of the Report - In July 2025, the REITs index fluctuated and corrected, with the consumption sector showing steady performance. The dividend - payout ratio spread between REITs and CSI Dividend narrowed, and the dividend - payout ratios of transportation and rental housing for guaranteed occupancy increased. Guojun Lingang REIT's expansion will increase the distribution ratio in 2025. The first - time issuance of data center REITs saw a narrowing of the first - day listing gains [4]. 3. Summary by Relevant Catalogs 3.1 REITs Index Fluctuated and Corrected, Consumption Sector Showed Steady Performance - **Index Performance**: In the second half of July, the CSI REITs (closing) index and CSI REITs Total Return Index fell by 0.4%/0.2% cumulatively. In the last week of July, as the 10 - year Treasury yield and the stock market both fluctuated and declined, the REITs market regained its upward momentum. Since the beginning of 2025, the CSI REITs (closing) index and CSI REITs Total Return Index have risen by 10.4%/13.9% cumulatively, outperforming the CSI 300 Index [4][9]. - **Sector Performance**: - Consumption sector: It has maintained an upward trend for 7 consecutive months, with an average increase of 1.81% in July, and the number of rising REITs accounted for 67% [4][13]. - Ecological and environmental protection sector: The turnover rate reached 1.27% (month - on - month increase of 0.35 pct), with some individual REITs rising and some falling [4][17]. - Industrial park and warehousing logistics sectors: They have risen for 3 consecutive months, but the average increase has shown a narrowing trend [4][13]. - Transportation sector: It fell for the first time since 2025, with an average decline of 0.75%, and the number of falling REITs accounted for more than half [4][13]. - Rental housing for guaranteed occupancy and water conservancy facilities sectors: They corrected for the first time after rising for 4 consecutive months, with an average decline of 1.95%/1.49% in July [4][13]. - Energy sector: It had the deepest decline in July, with an average decline of 2.94% [4][13]. - **Dividend - Payout Ratio**: As of July 31, 2025, the average TTM dividend - payout ratios of equity - type and concession - type REITs were 3.72%/7.16% respectively. Among equity - type REITs, warehousing logistics and industrial parks had relatively high dividend - payout ratios, while rental housing for guaranteed occupancy had a relatively low but increasing ratio. Among concession - type REITs, transportation REITs' leading advantage in dividend - payout ratio further expanded [4][20]. - **Valuation**: For concession - type REITs, the energy sector had a relatively high valuation, while the transportation sector had an attractive IRR. For equity - type REITs, the industrial park sector's IRR returned to the historical central level [21][25]. 3.2 Guojun Lingang REIT's Expansion, Distribution Ratio in 2025 to Increase - **Expansion Plan**: On July 29, 2025, Guojun Lingang Industrial Park REIT announced an expansion plan, with a proposed issuance share limit of 446.1 million shares and a proposed fundraising of no more than 1.7235 billion yuan. The expansion asset is the Kangqiao project, with an evaluation value of 1.532 billion yuan, a 69.19% increase compared to the book value [4][37]. - **Distribution Ratio Forecast**: After the expansion, the predicted distributable amounts for the period from April - December 2025 and 2026 are 82.52 million yuan and 110.6 million yuan respectively. With a fundraising of 1.7235 billion yuan, the predicted distribution ratios for 2025 and 2026 are 4.11%/4.15%, and the 2025 distribution ratio is 0.39 pct higher than before the expansion [4][37]. 3.3 First - Time Issuance of Data Center REITs, Narrowing of First - Day Listing Gains - **New Issuance**: In July 2025, two data center REITs were issued for the first time, enriching the underlying asset types of REITs. The number of offline inquiry institutions reached a new high, but the effective subscription multiple decreased due to the large issuance scale of the new projects, and the配售 ratio increased slightly to 0.6% [4]. - **Market Performance**: Affected by the secondary - market adjustment, the two REITs listed in July did not trigger the daily limit, with an average first - day closing increase of 24.2%. From January to July 2025, the offline total returns for 0.5/1 billion yuan of funds were 1.4214 million yuan/2.8428 million yuan, with a return rate of 2.84%. The three REITs with the first - time strategic placement unlocking in July all had positive returns, with an average unlocking return rate of 46.39%. There are currently 11 first - time issuance REITs projects in the queue [4].

Core Viewpoint - The C-REITs market is expected to continue its bull market trend into 2025, with the CSI REITs Index showing a year-to-date increase of 12.8%. Recent market pullbacks are attributed to lower risk appetite and lock-up expirations, but the core logic of REITs as a dividend allocation asset remains unchanged, suggesting better allocation opportunities post-adjustment [1][2]. Performance Summary - A total of 66 REITs disclosed their Q2 2025 reports, with 31 REITs providing achievement rate data. The average achievement rates for the three core indicators (revenue, EBITDA, and distributable amount) were 94.1%, 101.5%, and 91.5%, respectively. However, the overall performance pressure persists, with year-on-year growth rates for these indicators at -3.5%, -4.7%, and -7.0% [2][3]. Sector Analysis - The performance across sectors has become increasingly differentiated: - **Industrial Parks**: Overall performance and operations are mixed, with factory REITs maintaining stability while research and office REITs face ongoing pressure [4]. - **Warehousing and Logistics**: A strategy of exchanging price for volume continues, with a contraction in supply and growth in demand supporting a rebound in occupancy rates [4]. - **Affordable Rental Housing**: Operations remain stable at high levels, with policy-driven affordable rental housing showing significant performance advantages [4]. - **Consumer Sector**: Generally, performance targets are met, with high occupancy rates and seasonal fluctuations in rental prices. Shopping center REITs maintain stable occupancy, while outlet REITs face high pressure on occupancy and rental rates [4]. - **Transportation**: Overall performance is under pressure, with some projects significantly affected by traffic network diversions [4]. - **Municipal Projects**: Waste treatment projects face performance pressure, while water and water conservancy projects operate steadily [4]. - **Energy Sector**: Performance continues to diverge, influenced by electricity price pressures and fluctuations in power generation [4]. Investment Recommendations - Focus on two main lines for investment: - Prioritize quality domestic demand sectors, including policy-driven affordable rental housing, consumption, and municipal environmental protection [1][2]. - Pay attention to assets with relative valuation advantages under improving economic conditions, such as strong operational management factory projects, continuously improving occupancy warehouse logistics projects, and high-traffic highway projects [1][2].

Group 1 - The Chinese public REITs market is moving towards diversified and deepened development, with the approval of the first two data center REITs marking a significant step in asset diversification [1] - The data center is recognized as the "heart of computing power" driving the digital economy, with increasing demand due to advancements in technologies like AI and 5G [1] - The introduction of data center REITs provides a standardized and market-oriented exit channel, encouraging social capital participation in the sector [1] Group 2 - The strategic investment by Shoucheng Holdings reflects a deep understanding of the value of digital economy infrastructure, focusing on long-term holdings of quality assets [2] - The company is actively involved in building the Chinese REITs ecosystem, transitioning from a financial investor to a key player in infrastructure value reconstruction [3] - The investment in data center REITs not only diversifies the company's portfolio but also enhances liquidity and value, supporting the securitization of the IDC industry [3]

Core Viewpoint - The public REITs market in China has evolved significantly since its inception in May 2021, becoming an essential part of the capital market, with a total issuance of 68 products and a fundraising scale nearing 180 billion yuan by June 2025 [2][9]. Group 1: Market Performance - As of now, the CSI REITs total return index has increased by over 11% this year, showcasing a high level of excess returns compared to the stock market [3]. - Among the 68 REITs products this year, 67 have achieved positive returns, with an average increase of 20.3% [4]. - The top 20 REITs products have an average increase of 36.3%, with the highest performers being the Jiashi Wumei Consumption REIT and the Huaxia Dayuecheng Commercial REIT, both nearing a 50% increase [4][5]. Group 2: Investment Trends - The investment value of public REITs has attracted a wider range of institutional investors, including insurance companies, brokerage self-operated funds, and wealth management subsidiaries [7]. - The market is expected to continue its strong momentum, with 10 new public REITs issued by mid-2025, contributing to a total of 68 products in the market [9]. Group 3: Specific REIT Performance - The Jiashi Wumei Consumption REIT has recorded a remarkable increase of 51.56% this year, attributed to its resilient community commercial model [11]. - The Jiashi Wumei Consumption REIT reported a revenue of 25.58 million yuan and a net profit of 797,500 yuan for the first quarter of 2025 [13]. - The REIT's underlying assets, primarily community commercial properties, have maintained a high occupancy rate of 95% and a rental collection rate of 99.1% [17]. Group 4: Market Challenges and Opportunities - Despite the success of consumption REITs, the overall public REITs market faces challenges, including a scarcity of quality assets that meet operational and cash flow requirements [35]. - The rise of "Guzi Economy," characterized by high-value products driven by cultural symbols, is becoming a new growth point for consumption REITs [32].

Investment Rating - The industry investment rating is maintained as "Positive" [1] Core Viewpoints - The REITs market is expected to continue to provide good investment opportunities due to the downward pressure on bond market interest rates and the expectation of increased allocations from social security and pension funds [3][5] - The market transaction scale for REITs reached 599 million shares, a year-on-year increase of 20.04%, with a transaction amount of 2.895 billion yuan, up 49.92% year-on-year [25][27] - The overall performance of various REITs sectors showed mixed results, with housing REITs experiencing a weekly decline of 1.94% but a monthly increase of 5.98% [36][52] Summary by Sections 1. Policy Support - Six departments, including the People's Bank of China and the National Development and Reform Commission, jointly issued guidelines to support the issuance of REITs for eligible consumer infrastructure [4][12] - The China Green Development Commercial REIT was officially listed on the Shenzhen Stock Exchange, marking the 68th product in the public REIT market [13][14] 2. Market Review - The CSI REITs closing index was 880.9, up 11.83% year-on-year but down 1.46% month-on-month; the CSI REITs total return index was 1109.13, up 18.46% year-on-year but down 1.38% month-on-month [15][20] - Year-to-date, the CSI REITs closing index has increased by 16.45%, outperforming the CSI 300 index, which has risen by 14.3% [15][20] 3. Weekly Tracking - The weekly performance of various REIT sectors showed declines: housing (-1.94%), environmental (-0.88%), highway (-1.83%), industrial park (-1.06%), warehousing logistics (-2.37%), energy (-0.30%), and consumer REITs (-1.93%) [36][52] - The monthly performance for housing REITs was positive, with a 5.98% increase [36] 4. Market Activity - There are currently 16 REITs waiting to be listed, indicating a vibrant issuance market [6][36] - The average turnover rate over the past 30 days was 0.62%, down 10.11% year-on-year [30][34]

Core Viewpoint - The transition of the REITs market from traditional infrastructure to new infrastructure, particularly in data centers, is expected to enhance the digital economy and foster high-quality development in China [1][3]. Group 1: Development of REITs - The recent approval of two infrastructure REITs focused on data centers marks a significant step in the expansion of the REITs market in China [1][2]. - The issuance of infrastructure REITs has entered a normalization phase, indicating the end of a four-year pilot program and the beginning of a new journey for the market [2]. - Currently, there are 70 infrastructure REITs projects listed in China, with a total fund issuance amounting to 179.4 billion yuan, which is expected to drive over 1 trillion yuan in new project investments [4]. Group 2: Market Potential and Opportunities - The REITs market in China has become the largest in Asia and the second largest globally, with significant potential for future growth, especially in the securitization of new asset types like intellectual property and data assets [4]. - The successful listing of data center REITs indicates a breaking down of financing barriers for private enterprises in large infrastructure projects, enhancing their investment confidence [3]. - The "investment-operation-revitalization-reinvestment" cycle created by digital infrastructure REITs can be replicated in other sectors such as 5G and smart cities, promoting further integration of finance and the real economy [3].

Group 1 - The first batch of 9 infrastructure public REITs in China marks its fourth anniversary, showcasing a robust growth trajectory since the pilot program was initiated in April 2020 [1][2] - As of now, there are 22 REITs listed on the Shenzhen Stock Exchange, with a total fundraising scale of 57.81 billion yuan, covering various asset types such as ecological protection, industrial parks, toll roads, and logistics [1][2] - The "first issuance + expansion" dual-driven model has become a key development direction for the REITs market, with significant policy support for expansion [1][2] Group 2 - The total market capitalization of the 22 REITs on the Shenzhen Stock Exchange is approximately 68.67 billion yuan, with an average closing price increase of 25.18% compared to the issuance price, and a total dividend payout exceeding 6.54 billion yuan [2] - The approval of the first data center REIT, Southern Runze Technology REIT, on June 18, 2025, signifies a critical step towards new infrastructure sectors and supports the development of cutting-edge industries like AI and cloud computing [2] Group 3 - The Shenzhen Stock Exchange aims to promote high-quality development of the REITs market, focusing on expanding the pilot scale and supporting the issuance of REITs in technology innovation sectors [3] - Efforts will be made to improve regulatory mechanisms, enhance the quality of listed REITs, and optimize investor structure by encouraging institutional investors to participate more actively [3]

Core Viewpoint - The Chinese public REITs market has seen significant activity since 2025, with a majority of the 66 public REITs experiencing price increases, particularly in the consumer sector, driven by stable cash flows and improving economic conditions [1][2]. Group 1: Market Performance - As of June 13, 2025, only 2 out of 66 public REITs have declined in the secondary market, with the highest performer, Huaan Bailian Consumer REIT, increasing by 57.75% [1]. - Four consumer REITs have seen price increases exceeding 40%, while 11 have risen between 30% and 40% [1]. - The average dividend yield for consumer REITs is reported to be between 4.5% and 6% [2]. Group 2: Factors Driving Growth - Consumer REITs typically set high initial distribution rates (4%-5%), reflecting the stable cash flow characteristics of their underlying assets, which enhances investor interest [2]. - The decline in interest rates, with the 10-year government bond yield falling below 1.6%, has increased demand for REITs as a yield-generating asset, particularly in a low-interest environment [2][3]. - Consumer REITs are characterized by their resilience to economic cycles, with a reported average occupancy rate of 96.2% and a rent collection rate exceeding 99% [3]. Group 3: Policy Support and Market Sentiment - Recent government policies, such as the "Special Action Plan to Boost Consumption," have provided strong support for consumer infrastructure projects, enhancing confidence in the cash flows and investment value of consumer REITs [4]. - The market sentiment has shifted positively towards consumer REITs, driven by structural opportunities in the consumer sector, particularly during peak consumption periods [4]. - However, many public REITs are trading at high premiums, with Huaan Bailian Consumer REIT's market premium exceeding 50%, indicating potential trading risks [4].