Core Viewpoint - The first public REIT product in China, Penghua Qianhai Vanke REITs, will transition to Penghua Fengrui Bond Fund (LOF) after its 10-year operation period ends on July 8, 2025, allowing for trading on the Shenzhen Stock Exchange [2][5]. Group 1: Transition Details - The fund will change from a closed-end structure to an open-end bond fund, enabling both secondary market trading and subscription/redemption [3][5]. - The fund was established on July 6, 2015, and its shares have been listed on the Shenzhen Stock Exchange since September 30, 2015 [5]. - The fund's name will change from Penghua Qianhai Vanke REITs to Penghua Fengrui Bond Fund (LOF), with the fund code changing from 184801 to 160641 [5]. Group 2: Performance Metrics - The fund's performance benchmark is set at the yield of 10-year government bonds plus 1.5% [6]. - As of the end of the closed period, the fund achieved a cumulative net asset value growth rate of 54.6% since inception, with an annualized return of 4.45% [6]. - The fund has distributed dividends nine times, totaling 1.476 billion yuan, with annual dividend ratios declining significantly since 2022 [6]. Group 3: Investment Strategy - The fund primarily invested in equity of a single target company, which holds a premium office building in the Qianhai area, with a maximum of 50% of its assets allocated to this equity [9]. - The fund acquired a 50% stake in the target company for 1.26682 billion yuan, securing all operational income from the project since January 1, 2015 [9]. Group 4: Risk Mitigation Mechanisms - The fund implemented multiple credit enhancement mechanisms, including a significant investment from Penghua Fund and its investment advisor, Qianhai Financial Holdings, which committed to not transferring their shares for specified periods [10]. - A "margin account" clause was introduced in the transaction structure, serving as a performance compensation mechanism to safeguard investor returns [10].