1. Report Industry Investment Rating No information provided in the report. 2. Core Viewpoints of the Report - The 15th Five - Year Plan clearly proposes to actively promote the normal issuance of infrastructure REITs. This week, the REITs market showed weak oscillations, trading volume declined, and the data center rebounded after over - decline. Two REITs under China Merchants Shekou have released their annual reports. The rental housing REIT has stable performance, with the distributable amount completion rate reaching 102.7%, while the industrial park REIT performed weakly, with the distributable amount decreasing by 14.8% year - on - year. The institutional holding ratios of both products have increased compared to 2024. Attention should be paid to the partial share unlocks of Guodian Power New Energy REIT and Shanghai Real Estate Rental Housing REIT on March 29th and 31st respectively, with corresponding unlock scales of about 2.09 billion yuan (accounting for 24.7% of the project's total market value) and 645 million yuan (accounting for 36% of the project's total market value) respectively, and potential selling pressure due to the expansion of the floating shares should be vigilant. The concentrated disclosure window for REITs annual reports from March 28th to 31st may intensify price fluctuations at the end of the month, and it is recommended to manage liquidity in advance [3]. - As of March 13, 2026, 20 REITs have been successfully issued since 2025, with a total issuance scale of 40.3 billion yuan. This week, one new public offering REIT, the Hongtu Innovation Xinghe Group Commercial Real Estate REIT, has made new progress, being the second commercial real estate REIT on the Shenzhen Stock Exchange [3]. - This week, the CSI REITs Total Return Index (932047.CSI) closed at 1023.15 points, a decline of 0.43%, underperforming the CSI 300 by 0.62 percentage points and the CSI Dividend by 2.04 percentage points. The CSI REITs Total Return Index has increased by 1.32% since the beginning of the year, outperforming the CSI 300 by 0.47 percentage points but underperforming the CSI Dividend by 6.87 percentage points. In terms of project attributes, property - type REITs fell by 0.52% and franchise - type REITs fell by 0.17% this week. In terms of asset types, the data center (+0.74%), energy (+0.10%), consumption (-0.22%), and transportation (-0.24%) sectors performed relatively well [3]. - In terms of liquidity, the average daily turnover rates of property - type and franchise - type REITs this week were 0.36% and 0.35% respectively, down 0.67 and 4.31 basis points from last week. The trading volumes this week were 388 million and 119 million shares respectively, down 1.84% and 10.87% week - on - week. The data center sector was the most active [3]. - In terms of valuation, according to the ChinaBond valuation yield, the yields of property - type and franchise - type REITs are 4.00% and 4.93% respectively. The transportation (6.08%), warehousing and logistics (5.58%), and industrial park (4.83%) sectors rank among the top three [3]. 3. Summary According to the Directory 3.1 Primary Market: One New Public Offering REIT Made New Progress - Since 2025, 20 REITs have been successfully issued, with a total issuance scale of 40.3 billion yuan. This week, the Hongtu Innovation Xinghe Group Commercial Real Estate REIT was officially declared on March 10th, being the second commercial real estate REIT on the Shenzhen Stock Exchange, with Xinghe Industrial (Shenzhen) Co., Ltd. as the original equity holder. Currently, in the approval process, there are 32 newly - declared REITs, 1 has been questioned and responded, 0 has passed the review, and 0 is registered and awaiting listing. For the expansion and fundraising, 4 have been declared, and 1 has been questioned and responded [3][15]. 3.2 Secondary Market: The Index Closed Lower This Week 3.2.1 Market Review: The CSI REITs Total Return Index Declined by 0.43% - This week, the CSI REITs Total Return Index closed at 1023.15 points, a decline of 0.43%, underperforming the CSI 300 by 0.62 percentage points and the CSI Dividend by 2.04 percentage points. The CSI REITs Total Return Index has increased by 1.32% since the beginning of the year, outperforming the CSI 300 by 0.47 percentage points but underperforming the CSI Dividend by 6.87 percentage points. In terms of project attributes, property - type REITs fell by 0.52% and franchise - type REITs fell by 0.17% this week. In terms of asset types, the data center (+0.74%), energy (+0.10%), consumption (-0.22%), and transportation (-0.24%) sectors performed relatively well. Among individual bonds, 31 rose and 47 fell this week. The top three were Huatai - PineBridge Jiuzhoutong Pharmaceutical REIT (+1.86%), Guotai - Haitong Jinan Energy Heating REIT (+1.45%), and Southern Runze Technology Data Center REIT (+1.43%), while the bottom three were Harvest JD Warehousing Infrastructure REIT (-5.60%), Bosera Tianjin Binhai - TEDA Science and Technology Industrial Park REIT (-5.17%), and Bosera China Merchants Shekou Industrial Park REIT (-3.89%) [3]. 3.2.2 Liquidity: Both Turnover Rate and Trading Volume Decreased - The average daily turnover rates of property - type and franchise - type REITs this week were 0.36% and 0.35% respectively, down 0.67 and 4.31 basis points from last week. The trading volumes this week were 388 million and 119 million shares respectively, down 1.84% and 10.87% week - on - week. The data center sector was the most active [3][25]. 3.2.3 Valuation: The Valuation of the Affordable Housing Sector is Relatively High - According to the ChinaBond valuation yield, the yields of property - type and franchise - type REITs are 4.00% and 4.93% respectively. The transportation (6.08%), warehousing and logistics (5.58%), and industrial park (4.83%) sectors rank among the top three [3][29]. 3.3 This Week's News and Important Announcements - **This Week's News**: Multiple events occurred this week, including Xincheng Holdings' plan to subscribe for at least 34% of the issuance shares of the Guangfa Xincheng Wuyue Commercial Real Estate REIT; the start of the tender for the Langhao Hotel Commercial Real Estate REITs project; Wuxi's efforts in public offering REITs with the signing of five REITs cooperation projects; Shandong's implementation of the "Ten - Hundred - Thousand" listing cultivation plan; Sichuan's organization of a commercial real estate REITs pilot promotion work meeting; and the release of the 15th Five - Year Plan proposing to actively promote the normal issuance of infrastructure REITs [34]. - **Important Announcements**:华夏基金华润有巢 REIT announced its 4th dividend in 2025, with a dividend plan of 0.1462 yuan per 10 fund shares, and the total distribution amount accounts for about 99.9978% of the undistributed distributable amount. Bosera Shekou Industrial Park REIT and China Merchants Fund Shekou Rental Housing REIT released their annual reports, including information such as rental rates, average rents, and rent collection rates [35].

Core Viewpoint - The launch of commercial real estate REITs in China marks a significant milestone, with three funds officially submitted for approval, reflecting a response to regulatory initiatives and a commitment to market-oriented and rule-of-law principles [1][4]. Group 1: Market Development - The three commercial real estate REITs submitted by Huaxia Fund aim to raise nearly 40 billion yuan, covering diverse asset types including retail, mixed-use, office buildings, and hotels [3]. - The inclusion of various asset types from international brands and local retail giants illustrates the market's diversification and adaptability within a unified regulatory framework [3]. - The trial emphasizes the importance of self-regulation and market evolution under a clear institutional framework, allowing for rational investor assessments of valuation logic, operational efficiency, and distribution stability [3]. Group 2: Regulatory Framework - Legal compliance is fundamental for the approval of commercial real estate REITs, with most underlying assets having an operational history of over ten years and located in core urban areas with stable occupancy rates [4]. - The regulatory approach balances compliance with the practical impacts on real estate projects, allowing for feasible optimization paths within a legal framework [4]. - The focus on operational quality and investor protection is crucial, ensuring adequate disclosure, rectification, and accountability to support the standardized operation of projects [4]. Group 3: Iterative Process - The introduction of commercial real estate REITs is seen as a key advancement in the ongoing development of China's public REITs market, drawing from global best practices while being rooted in local realities [5]. - The trial phase allows for differentiated exploration within a regulated environment, fostering innovation and adaptability in the execution of projects [5]. - The collaboration between legal frameworks, market resource allocation, and government support is essential for the sustainable development of commercial real estate REITs, enabling long-term returns for investors [5].

Core Viewpoint - Bitcoin has slightly declined amid ongoing concerns about potential disruptions caused by artificial intelligence (AI), leading investors to remain cautious about significantly increasing their investments in the cryptocurrency market [1] Group 1: Market Sentiment - The dominant theme in the market is the disruption caused by AI, with investors showing caution towards industries that may face challenges from AI [1] - Industries such as software, financial intermediaries, real estate investment trusts, legal, and logistics are experiencing impacts from AI disruption concerns [1] Group 2: Cryptocurrency Market Dynamics - Analysts from Saxo Bank indicate that the movements in the cryptocurrency market suggest a phase of consolidation rather than panic [1] - Bitcoin's price decreased by 0.3%, reaching $68,688 [1] Group 3: Broader Market Context - The U.S. stock market was closed on Presidents' Day, resulting in reduced catalysts for risk appetite and decreased liquidity [1]

1. Report Industry Investment Rating No information about the industry investment rating is provided in the report. 2. Core Views of the Report - In January 2026, the primary - market REITs products were all of the first - issue type, with consumer infrastructure having the most applications. The secondary - market REITs index rose, and market activity increased. All sectors showed an upward trend, with water conservancy facilities having the largest increase. The turnover rate of new infrastructure was the highest, and the trading volume of park infrastructure was the largest. The valuation yield of equity - type REITs was still lower than that of concession - type REITs [4]. - The concentrated withdrawal of REITs applications in January 2026 may mark that the Chinese REITs market is moving from a concept - driven speculation stage to a value - dominated mature cycle [41][42]. 3. Summary According to the Directory 3.1 Primary - Market Issuance Dynamics - As of January 30, 2026, no new public REITs products were issued in the year, 3 less than the same period in 2025. In the past three months, all applications were first - issue types. There were 10 REITs products in the accepted state, 3 in the in - inquiry state, and 4 with exchange feedback. Consumer infrastructure had the most applications (7), followed by park infrastructure and transportation infrastructure (3 each), energy infrastructure (2), and affordable rental housing and municipal facilities (1 each) [9]. - In January 2026, 14 REITs projects had their exchange review status updated, including details such as project names, asset types, review status, original equity holders, and estimated values [10][11][12]. 3.2 Secondary - Market Review and Analysis 3.2.1 Market Scale - As of January 30, 2026, the total market value of public REITs in the whole market was 228.709 billion yuan, an increase of 10.246 billion yuan from the previous month. The total circulating market value increased to 124.705 billion yuan, with a monthly increase of 3.766 billion yuan. The trading volume in January was 3.118 billion shares, an increase of 0.652 billion shares from the previous month, indicating increased market trading activity [28]. 3.2.2 Price Changes and Volatility - In January 2026, the CSI REITs Total Return Index closed up 4.22%, and the CSI REITs (Closing) Index closed up 3.98%, outperforming the Dividend Index (up 3.32%), the CSI 300 Index (up 1.65%), and the ChinaBond New Composite Wealth Index (up 0.39%), but underperforming the CSI Convertible Bond Index (up 5.82%) [29]. - The volatility of the CSI REITs Total Return Index in January was 0.40%, higher than that of the ChinaBond New Composite Wealth Index (0.05%) but lower than that of the CSI 300 Index (0.72%), the Dividend Index (0.83%), and the CSI Convertible Bond Index (0.92%) [31]. - By project attribute, the weighted average monthly price change of concession - type REITs was 3.45%, underperforming equity - type REITs (5.72%). By underlying asset type, all sectors rose, with water conservancy facilities leading with a 9.70% increase, followed by new infrastructure (+8.41%) [32]. - At the individual bond level, 8 REITs had a monthly increase of over 10% in January 2026, with Hua'an Bailian Consumer REIT leading with a 17.43% increase, while 2 REITs had a decline of over 1%, namely Huaxia Nanjing Expressway REIT (down 1.46%) and E Fund Guangzhou Development Zone High - tech Industrial Park REIT (down 3.17%) [38]. 3.2.3 Secondary - Market News - In January 2026, 5 REITs products withdrew their application documents, including those related to Vanke's Wanke Logistics REITs. This was related to Vanke's capital pressure and the improvement of regulatory review standards. This may mark the Chinese REITs market moving into a value - dominated mature cycle [41][42]. 3.2.4 Turnover Rate and Valuation - In terms of monthly trading volume in January 2026, park infrastructure - type REITs ranked first with 920 million shares, followed by warehousing and logistics (564 million shares), consumer (532 million shares), etc. In terms of monthly average daily turnover rate, the new infrastructure sector led with 1.14% [43]. - As of January 30, 2026, the average cash distribution rate of equity - type REITs was 4.67% (7.90% for energy infrastructure was the highest), and that of concession - type REITs was 8.19% (9.44% for transportation infrastructure was the highest). The ChinaBond REITs valuation yield (IRR) of concession - type REITs (4.83%) was higher than that of equity - type REITs (3.80%). The CSI REITs to ABS valuation ratio of equity - type REITs (1.28) was higher than that of concession - type REITs (1.08) [44].

Investment Rating - The report does not provide a specific investment rating for the REITs industry [1] Core Insights - The REITs index experienced a decline of 0.91% this week, while the Shanghai and Shenzhen 300 index fell by 1.33% [4][14] - The total market capitalization of the REITs industry is approximately 227.28 billion yuan, with a circulating market value of about 123.93 billion yuan [1] - The correlation of REITs with various indices since their listing includes 0.24 with ten-year government bonds, 0.09 with one-year government bonds, and 0.64 with convertible bonds [4][14] - Notable events include the listing of the China Nuclear Clean Energy REIT and the application for commercial real estate REITs by Huatai and Everbright [6][11] Market Performance - The trading volume for the week was 2.68 billion yuan, representing a decrease of 8.6%, with an average daily turnover rate of 0.4% [40] - The trading amounts for various sectors included 4.9 billion yuan for highways (-9.9%), 1.0 billion yuan for ecological protection (-30.8%), and 5.2 billion yuan for clean energy (+48.6%) [40] - The performance of individual REITs showed that 17 increased, 1 remained stable, and 61 decreased, with the largest increase being 26.80% for China Nuclear Energy [18] Project Approval Progress - Recent approvals include the application for commercial real estate REITs by Huatai and Everbright, and the listing of the China Nuclear Clean Energy REIT [11][12] Valuation Situation - The estimated yield for bonds ranged from -0.59% to 11.03%, with the highest yield for Ping An Guangzhou Guanghe at 11.03% [42] - The P/NAV ratio for the REITs is between 0.72 and 1.84, with the highest being 1.84 for Jiashi Wumei Consumption [42]

Core Insights - The introduction of cultural tourism REITs marks a significant innovation in China's capital market, indicating a new phase in the securitization of cultural tourism assets and providing investors with new pathways to participate in the industry [1] Group 1: Definition and Background - Cultural tourism REITs are trust funds based on cultural tourism real estate, pooling investor funds through the issuance of income certificates, managed by professional institutions, and distributing investment returns to investors [2] - The cultural tourism industry has shown strong recovery post-pandemic, with domestic tourism revenue reaching 4.91 trillion yuan in 2023, returning to pre-pandemic levels. However, challenges such as high investment costs and long return cycles hinder sustainable development [2] Group 2: Characteristics of Initial Projects - The first batch of cultural tourism REITs is expected to feature high-quality assets with stable cash flows, including mature and profitable cultural tourism assets like large theme parks and well-known tourist attractions [3] - The projects will likely have a balanced regional distribution, covering both developed eastern regions and unique resources in central and western areas, creating regional complementarity [3] - Clear operational models are crucial for success, with experienced professional operators managing daily operations to ensure asset value appreciation [3] Group 3: Market Impact and Investment Value - Cultural tourism REITs will create a complete cycle of investment, financing, management, and exit, allowing developers to recoup funds for new projects, thus fostering a positive cycle [4] - For investors, these REITs offer an alternative investment choice with inflation-resistant characteristics and cash flows directly linked to the consumer market, which can help optimize investment portfolios [4] - Local governments can utilize cultural tourism REITs to activate existing assets and introduce social capital into public tourism facility operations, alleviating fiscal pressure while enhancing service efficiency [4] Group 4: Future Outlook - The launch of cultural tourism REITs signifies a new stage of financialization in the cultural tourism sector, potentially leading to standardized and transparent asset evaluations, professional division of labor, and increased long-term capital investment [6] - The market for cultural tourism REITs is expected to grow rapidly over the next 3-5 years, potentially reaching a market size of hundreds of billions of yuan [6] - The successful implementation of these REITs will require collaboration among regulatory bodies, issuers, investors, and professional service institutions to build a healthy and sustainable market ecosystem [6]

Core Viewpoint - The public REITs market in China is experiencing a significant regulatory shift, with the first instances of project withdrawals occurring as a result of new guidelines issued by the Shanghai and Shenzhen Stock Exchanges, which clarify the conditions under which REITs applications may be suspended or terminated [1][6][10]. Group 1: Project Withdrawals - Jin Feng Technology announced on January 20, 2026, its decision to terminate the application for the Jianxin Jin Feng New Energy REIT, marking the first case of a project entering the review stage but failing to issue successfully [1][3]. - On the same day, Electronic City also announced its intention to withdraw the application for the Chuangjin Hexin Electronic City Industrial Park REIT, indicating a strategic retreat to enhance project stability [1][7]. - The recent regulatory changes are closely linked to these withdrawals, as the new guidelines specify conditions for the suspension or termination of REITs applications [1][4]. Group 2: Regulatory Changes - The new guidelines, effective from December 31, 2025, outline specific circumstances under which the review of REITs applications may be terminated, including expired financial documents and failure to respond to inquiries within the stipulated time [4][14]. - The introduction of these guidelines aims to improve the transparency and efficiency of the REITs application process, ensuring that projects do not remain in limbo and occupy regulatory resources unnecessarily [7][17]. - The regulatory environment is shifting towards a more stringent approach, emphasizing the importance of maintaining high standards for project approvals in the public REITs market [6][10]. Group 3: Market Dynamics - As of the end of 2025, there were 79 public REITs listed in China, with a total issuance scale exceeding 210 billion yuan, reflecting a steady expansion of the market [6][16]. - The relationship between REIT issuers and investors is evolving, with a shift from early valuation premiums to a more rational and professional pricing phase [6][10]. - The market is expected to see a balance between active applications and stringent entry requirements, creating a new ecosystem for public REITs [10][18].

Investment Rating - The report maintains a recommendation for the REITs industry [2] Core Insights - The REITs market has seen a total of 78 public REITs listed with a total market capitalization of 223.3 billion yuan and a circulating market value of 124.7 billion yuan [2] - The overall performance of the market in 2025 showed a cumulative increase of 4.3% in the CSI REITs total return index, with a notable rise of 16.2% in the first half of the year, followed by a decline of 10.2% in the second half due to various negative factors [7][8] - The average P/NAV for the REITs market at the end of 2025 was 1.14 times, indicating a return to historical average valuation levels [7] - The report suggests that the current REITs valuation has returned to a central position, indicating a potential opportunity for increased allocation [7] Market Overview - The secondary market performance in 2025 was characterized by a strong first half, driven by macro liquidity easing, followed by a weaker second half due to valuation corrections and negative market sentiment [8] - The average daily turnover rate for the market decreased throughout the year, reflecting a decline in trading enthusiasm, with an average of 0.67% for the year and dropping to 0.4% in December [9] - The report highlights that the IDC and consumer sectors outperformed the market, with increases of 44% and 33% respectively, while the energy sector showed the weakest performance [12][15] Primary Market Review - In 2025, the total number of new issuances and expansions was 25, with a total issuance amount of 47.3 billion yuan, representing a year-on-year decrease of 14% in the number of issuances and 27% in the total amount [16][17] - The average absolute return for newly listed REITs was 27% over the first four days of trading, with a 10.5% probability of "breaking" [21] Policy Review - Key policies in 2025 included the expansion of asset categories for infrastructure REITs to include commercial office buildings, hotels, and sports venues, as well as the initiation of commercial real estate REITs pilot programs [26][27][28] - The report notes that the regulatory environment is becoming more favorable for REITs, with efforts to streamline approval processes and broaden the scope of eligible assets [29][30]

Core Viewpoint - The article discusses the expansion of China's public REITs market into the commercial real estate sector, marking a significant shift towards a dual development phase alongside infrastructure REITs, effective from December 31, 2025 [1][5]. Group 1: Regulatory Framework - The China Securities Regulatory Commission (CSRC) has established a "1+3+N" policy framework for commercial real estate REITs, which includes one announcement, three notifications, and 17 supporting rules from various financial institutions [3]. - The new rules aim to enhance the adaptability and inclusiveness of the regulatory framework while ensuring strict management and compliance [3][4]. Group 2: Market Development Strategy - The introduction of commercial real estate REITs is not merely an asset type expansion but a strategic move to align with the distinct characteristics of commercial real estate and infrastructure, enhancing the overall effectiveness of REITs in capital markets [5]. - The regulatory approach will focus on a parallel development strategy for commercial real estate and infrastructure REITs, aiming to deepen the market's service to the real economy [6]. Group 3: Project Selection and Quality Control - The regulatory authorities will prioritize high-quality projects and maintain a cautious approach in the initial phase of the commercial real estate REITs pilot, emphasizing compliance and risk management [7]. - There will be a focus on core urban areas and mature commercial real estate projects, particularly those owned by listed companies, state-owned enterprises, and reputable private firms [7][8]. Group 4: Responsibilities of Intermediaries - Intermediary institutions will bear significant responsibility in the REITs process, ensuring due diligence and compliance with high standards in their operations [8]. - The regulatory framework will enforce strict oversight of the REITs approval and registration processes, promoting transparency and accountability [8].

Core Viewpoint - The announcement by the China Securities Regulatory Commission (CSRC) regarding the pilot launch of commercial real estate investment trusts (REITs) will take effect from December 31, 2025, marking a significant expansion of China's public REITs market into the commercial real estate sector, indicating a new phase of parallel development between commercial real estate and infrastructure REITs [1][4]. Group 1: Regulatory Framework - The CSRC has established a "1+3+N" policy framework for the commercial real estate REITs system, which includes one announcement, one notice, two working regulations, and 17 supporting rules from various institutions [2]. - The new rules aim to adaptively optimize management while maintaining strict oversight, enhancing the inclusiveness and adaptability of the system, and reflecting targeted arrangements for different types of REITs [2]. - The announcement outlines eight key provisions that clarify the core institutional arrangements for commercial real estate REITs, including product definitions, fund registration, operational management requirements, and regulatory responsibilities [2]. Group 2: Market Development - The introduction of commercial real estate REITs signifies a shift towards a mature market that encompasses all categories and assets, moving towards a dual development model alongside infrastructure REITs [4]. - The regulatory approach will focus on enhancing the breadth and depth of REITs' service to the real economy, with a strategy to advance both commercial real estate and infrastructure REITs in parallel [4][5]. - The commercial real estate REITs are expected to promote consumption and structural adjustments, being more closely linked to macroeconomic cycles and consumer sentiment, while infrastructure REITs will continue to stabilize the economy and address shortfalls [5]. Group 3: Project Selection and Oversight - The regulatory authorities will prioritize the selection of high-quality projects, focusing on core urban areas and economically vibrant regions, and will support projects from listed companies, central enterprises, and reputable private and foreign firms [7]. - There will be a strong emphasis on the responsibilities of intermediary institutions, ensuring they adhere to strict standards in due diligence, material preparation, pricing, and information disclosure [8]. - The regulatory framework will include comprehensive monitoring and risk management to maintain market order and stability, with a commitment to transparency and public oversight in the REITs registration and regulatory processes [8].