Investment Rating - The report does not provide a specific investment rating for the industry [2] Core Insights - The REITs index decreased by 0.83% this week, while the Shanghai and Shenzhen 300 index fell by 1.41%. The correlation of REITs with the 10-year treasury bond is 0.27, with the 1-year treasury bond at 0.12, and with convertible bonds at 0.63. In comparison, the correlation with the Shanghai and Shenzhen 300 index is 0.41 and with the dividend index is 0.24 [5][19][20]. Industry Overview - The industry consists of 79 listed companies with a total market capitalization of 2217.50 billion and a circulating market capitalization of 1227.72 billion [2]. - This week, the market saw significant events including the successful subscription of the Oriental Red Tunnel REIT at 174 times and the approval of the China Aviation Beijing Changbao Rental Housing REIT [12][18]. Market Performance - The trading volume for the week was 17.1 billion, reflecting a decrease of 15.3%. The average daily turnover rate was 0.3% [8]. - Among the REITs, 12 increased in value, while 67 decreased, resulting in an overall decline of 0.83% [23]. Project Developments - The report highlights several key project developments, including the signing of the JD REIT Langfang project and the approval of multiple REITs such as the Guolian An Atlantis Commercial Real Estate REIT [12][18]. - The China Aviation Beijing Changbao Rental Housing REIT is set to start its inquiry on March 27, with a pricing range of 1.822 to 2.318 yuan per share [12]. Investment Recommendations - The report suggests that despite recent market fluctuations, the long-term outlook for REITs remains strong, emphasizing the importance of monitoring sector rotation and expansion opportunities [9].

1. Report Industry Investment Rating No information about the industry investment rating is provided in the given content. 2. Core Viewpoints of the Report - The REITs market continued to decline, posting losses for the fifth consecutive week. Before the annual report disclosure, the liquidity of equity - type REITs continued to decline, while that of concession - type (mainly transportation and environmental protection projects) increased. Warehouse logistics continued to lead the decline, but the decline narrowed. Currently, funds are mainly on the sidelines, waiting for primary - market participation opportunities, and the willingness to participate in the secondary market is generally weak [2]. - This week, four new public REITs had new progress in the primary market. The Dongfanghong Tunnel REIT completed the inquiry on Wednesday, with a final price of 4.68 yuan per share, a premium rate of 12.6%, and an effective subscription multiple of 173.69 times, corresponding to an offline capital scale of about 170.7 billion yuan. The Changbao Rental Housing REIT started the inquiry on Friday, but its overall scale was relatively small, about 830 million yuan [2]. - Next week, the REITs annual reports will be concentratedly released in the first half of the week, and three products will be lifted from the lock - up period, which may cause short - term disturbances to the market [2]. 3. Summary According to the Directory 3.1 Primary Market: Four New Public REITs Had New Progress - Since 2025, 20 REITs have been successfully issued, with a total issuance scale of 40.3 billion yuan. This week, four new public REITs had new progress: the Zhonghang Beijing Changbao Rental Housing REIT was in the inquiry stage, the Dongfanghong Tunnel High - speed REIT was in the inquiry stage, the GF Xincheng Wuyue Commercial Real Estate REIT was under inquiry, and the Guolianan Fuxing Commercial Real Estate REIT was declared, with Sanya Atlantis as the underlying asset [2]. - The current REITs in the approval process: (1) For new issues, 33 have been declared, 2 have been inquired and feedback has been given, 0 have passed the review, and 0 are registered and waiting to be listed. (2) For expansion and fundraising, 4 have been declared, 1 has been inquired and feedback has been given, and 1 has passed the review [2]. 3.2 Secondary Market: The Index Declined This Week 3.2.1 Market Review: The CSI REITs Total Return Index Declined by 0.83% - This week, the CSI REITs Total Return Index (932047.CSI) closed at 1013.34 points, a decline of 0.83%, outperforming the CSI 300 by 0.59 percentage points and underperforming the CSI Dividend by 0.30 percentage points. The CSI REITs Total Return Index has risen by 0.35% since the beginning of the year, outperforming the CSI 300 by 3.10 percentage points and underperforming the CSI Dividend by 3.99 percentage points [2]. - By project attribute, equity - type REITs fell 0.88% this week, and concession - type REITs fell 0.75%. By asset type, the consumer (- 0.32%), environmental protection and water utilities (- 0.40%), energy (- 0.73%), and affordable housing (- 0.78%) sectors performed better [2]. - By individual bond, 12 rose and 67 fell this week. Among them, China Merchants Expressway REIT (+1.48%), Southern Vanda Data Center REIT (+1.33%), and BOC Sinotrans Warehouse Logistics REIT (+1.08%) ranked in the top three, while Huaxia Nanjing Expressway REIT (- 5.72%), CICC Chongqing Liangjiang REIT (- 4.08%), and Southern SF Logistics REIT (- 3.63%) ranked in the bottom three [2]. 3.2.2 Liquidity: The Turnover Rate and Trading Volume of Equity - Type REITs Both Declined - The average daily turnover rate of equity - type/concession - type REITs this week was 0.30%/0.32%, a change of - 1.08/+4.28 BP compared with last week. The trading volume within the week was 322 million/109 million shares, a week - on - week change of - 3.52%/+15.28%. The data center sector was the most active [2]. 3.2.3 Valuation: The Affordable Housing Sector Had a Higher Valuation - From the perspective of ChinaBond valuation yields, equity - type/concession - type REITs were 4.09%/5.09% respectively. The transportation (6.26%), warehouse logistics (5.82%), and park (4.97%) sectors ranked in the top three [2]. 3.3 This Week's News and Important Announcements - **News**: On March 24, 2026, the tender announcement for the financial advisor and fund manager of the Changchun Urban Development Investment Holding Group's water infrastructure public REITs was released, with the opening date on April 14. On March 25, 2026, the project of selecting the financial advisor and fund management unit for the Changchun Heating Public REITs failed to attract enough bidders and was aborted. On March 25, 2026, the candidate for the custodian bank of the Taoxichuan Cultural and Creative Block REITs project was announced, with the China Construction Bank Jiangxi Branch as the first - ranked candidate. On March 26, 2026, the candidate for the fund manager of the Anhui Jiuhuashan Cultural and Health Care Public REITs was announced [31]. - **Announcements**: The strategic placement shares of the Huitianfu Shanghai Real Estate Rental Housing REIT (180 million shares) will be unlocked on March 31, 2026. The simulated issuance scale of the CICC Xiamen Affordable Housing REIT's expansion and fundraising is 685.8 million yuan, with the proposed issuance amount not higher than 788.7 million yuan (inclusive) and not lower than 690 million yuan (inclusive). The strategic placement shares of the Zhonghang Jingneng International Energy REIT (103 million shares) will be unlocked on March 29, 2026. The strategic placement shares of the CITIC Construction Investment State Power Investment New Energy REIT (197.6 million shares) will be unlocked on March 30, 2026. The Dongfanghong Tunnel Expressway REIT will be sold offline and to the public from April 1 - 2, 2026, with a price of 4.68 yuan per share and an effective subscription multiple of 173.69 times [32].

1. Report Industry Investment Rating - Not provided in the given content 2. Core Viewpoints of the Report - The REITs market continued to decline, with the CSI REITs Total Return Index falling 0.83% this week, outperforming the CSI 300 by 0.59 percentage points but underperforming the CSI Dividend by 0.30 percentage points. The market has been down for five consecutive weeks. Before the annual report disclosure, the liquidity of property - type REITs continued to decline, while that of concession - type REITs (mainly transportation and environmental protection projects) rebounded. Warehouse logistics continued to lead the decline, but the decline narrowed. Currently, funds are mainly on the sidelines, waiting for primary - market participation opportunities, and the willingness to participate in the secondary market is generally weak. This week, four first - issue public REITs made new progress, and next week, the concentrated release of REITs annual reports and the unlocking of three products may cause short - term market disturbances [2]. 3. Summary by Directory 3.1 Primary Market - Four first - issue public REITs made new progress this week: the China Aviation Beijing Changbao Rental Housing REIT started the inquiry; the Dongfanghong Tunnel Expressway REIT completed the inquiry with a final price of 4.68 yuan per share, a premium rate of 12.6%, and an effective subscription multiple of 173.69 times, corresponding to an offline capital scale of about 170.7 billion yuan; the GF Xincheng Wuyue Commercial Real Estate REIT was under inquiry; the Guolianan Fuxing Commercial Real Estate REIT was declared, with Sanya Atlantis as the underlying asset. As of March 27, 2026, 20 REITs have been successfully issued since 2025, with a total issuance scale of 40.3 billion yuan [2][13]. 3.2 Secondary Market 3.2.1 Market Review - The CSI REITs Total Return Index closed at 1013.34 points, down 0.83% this week. The year - to - date increase of the CSI REITs Total Return Index is 0.35%, outperforming the CSI 300 by 3.10 percentage points but underperforming the CSI Dividend by 3.99 percentage points. By project attribute, property - type REITs fell 0.88% and concession - type REITs fell 0.75% this week. By asset type, the consumer (- 0.32%), environmental protection and water services (- 0.40%), energy (- 0.73%), and affordable housing (- 0.78%) sectors performed better. Among individual bonds, 12 rose and 67 fell. The top three were China Merchants Expressway REIT (+1.48%), Southern Wanguo Data Center REIT (+1.33%), and BOC Sinotrans Warehouse Logistics REIT (+1.08%), while the bottom three were Huaxia Nanjing Traffic Expressway REIT (- 5.72%), CICC Chongqing Liangjiang REIT (- 4.08%), and Southern Shunfeng Logistics REIT (- 3.63%) [2]. 3.2.2 Liquidity - The average daily turnover rates of property - type and concession - type REITs this week were 0.30% and 0.32% respectively, down 1.08BP and up 4.28BP from last week. The weekly trading volumes were 322 million and 109 million shares respectively, down 3.52% and up 15.28% week - on - week. The data center sector was the most active [2][22]. 3.2.3 Valuation - From the perspective of ChinaBond valuation yields, the yields of property - type and concession - type REITs are 4.09% and 5.09% respectively. The transportation (6.26%), warehouse logistics (5.82%), and park (4.97%) sectors ranked in the top three [2]. 3.3 This Week's News and Important Announcements 3.3.1 This Week's News - On March 24, 2026, the tender announcement for the financial advisor and fund manager of the Changchun Urban Development Investment Holding Group's water infrastructure public REITs project was released, with the opening date on April 14. On March 25, the project for selecting the financial advisor and fund management unit of the Changchun Heating Public REITs project failed to attract enough bidders and was aborted. On March 25, the candidate for the custodian bank of the Taoxichuan Cultural and Creative Block REITs project was announced, with the China Construction Bank Jiangxi Branch as the first - ranked candidate. On March 26, the candidate for the fund manager of the Anhui Jiuhua Mountain Cultural and Health - Care Public REITs was announced [29]. 3.3.2 Important Announcements - The strategic placement shares of the Huitianfu Shanghai Real Estate Rental Housing REIT (508055.SH) will be unlocked on March 31, 2026. The circulation shares before and after unlocking are 150 million and 330 million shares respectively, accounting for 30% and 66% of the total shares. The CICC Xiamen Anju REIT (508058.SH) announced an expansion plan, with a simulated offering scale of 685.8 million yuan at par, and the planned offering amount is not higher than 788.7 million yuan (inclusive) and not lower than 690 million yuan (inclusive). The strategic placement shares of the China Aviation Jingneng International Energy REIT (508096.SH) will be unlocked on March 29, 2026. The circulation shares before and after unlocking are 137 million and 240 million shares respectively, accounting for 22.8% and 39.94% of the total shares. The strategic placement shares of the CITIC Construction Investment State Power Investment New Energy REIT (508028.SH) will be unlocked on March 30, 2026. The circulation shares before and after unlocking are 442.4 million and 640 million shares respectively, accounting for 55.3% and 80% of the total shares. The Dongfanghong Tunnel Expressway REIT (508020.SH) announced its offering, with 98 valid bidders, 699配售 objects, and a total valid subscription share of 3,647,424 million shares, 173.69 times the initial offline offering shares, priced at 4.68 yuan per share. The offline and public subscription dates are from April 1 to 2, 2026 [30].

Core Insights - CITIC Securities reported a record performance for 2025, with total revenue reaching 748.54 billion RMB, a year-on-year increase of 28.79%, and net profit attributable to shareholders at 300.76 billion RMB, up 38.58% [2][3] - The company's total assets grew to 2.08 trillion RMB, reflecting a 21.70% increase from the previous year, with a return on equity (ROE) of 10.59%, up 2.5 percentage points [2] - The international business segment achieved a record revenue of 155.19 billion RMB, marking a 41.75% year-on-year growth and accounting for 20.7% of total revenue [7] Financial Performance - The securities investment business remained the largest revenue source, generating 276.05 billion RMB, a 14.83% increase, while brokerage and asset management revenues were 207.87 billion RMB (up 25.55%) and 142.94 billion RMB (up 24.59%), respectively [4] - The investment banking segment saw a significant recovery, with underwriting revenue reaching 60.55 billion RMB, a 50.12% increase, and a market share of 24.36% in A-share underwriting [5] - The company plans to distribute a cash dividend of 7.00 RMB per 10 shares, totaling over 10.3 billion RMB, marking a nearly 35% increase from the previous year [3] International Business Growth - The international business segment's revenue contribution reached a new high, with CITIC Securities International achieving 33 billion USD in revenue and 9 billion USD in net profit, representing growth of 48% and 72%, respectively [7] - The company ranked first in the offshore bond market and second in the Hong Kong IPO market, with significant contributions from major projects like Zijin Mining and BYD [7][8] Strategic Focus - The company aims to enhance its business network, service ecosystem, and management mechanisms to improve cross-border comprehensive service capabilities [8] - Future plans include expanding business in the Asia-Pacific region and increasing resource allocation in markets like Singapore and the UK to create a balanced international business structure [8]

Core Viewpoint - The article discusses the limitations of the current public REITs pricing model in China and proposes a two-stage pricing model that incorporates renewal and expansion factors to better assess the long-term value of REITs [1][2]. Current Public REITs Pricing Model and Its Limitations - The existing public REITs pricing model relies heavily on a finite-life discounted cash flow (DCF) model, which has shown systematic biases as the market matures [5]. - Key assumptions in the current model include fundamentals, discount rates, project duration, and terminal value, which may not fully capture the active management and long-term value of assets [4][6]. - The model typically assumes a terminal value of zero, which may undervalue the economic lifespan and usage value of property assets [6][8]. Two-Stage REITs Pricing Model - The proposed two-stage pricing model considers both renewal and expansion factors, particularly for property REITs [11]. - The first stage focuses on explicit growth during the initial years, while the second stage addresses terminal value based on long-term growth rates [18][19]. - The model aims to provide a more accurate valuation by incorporating the costs associated with land renewal and the potential for expansion [20]. Renewal Factor Pricing - The renewal of land use rights is a critical parameter in property project pricing, with significant implications as the expiration date approaches [12]. - Current policies regarding land renewal in China are not fully established, leading to uncertainties in the renewal process [13]. - Different countries have varying renewal policies, which can influence the financial costs and valuation of assets [13]. Expansion Factor Pricing - Expansion is a key avenue for REITs to achieve scale and enhance per-share earnings, relying on the manager's ability to leverage market valuation premiums for low-cost financing [18]. - Successful acquisitions that yield higher distribution rates than the current REITs level can create incremental value [18]. Long-Term Development of Public REITs - The article posits that the equity attributes of public REITs may contribute to the sustained development of the market, shifting focus from current cash flows to long-term intrinsic value and management growth capabilities [26][27]. - Strengthening the equity nature of public REITs is essential for correcting short-term pricing distortions and guiding the financialization of real estate in China [27][28]. Governance Mechanisms and Market Dynamics - The equity nature of REITs can stimulate the alignment of incentives between management and investors, enhancing the overall market efficiency [28][29]. - A shift towards a more diversified pricing system can help avoid "value traps" and promote a healthier market environment, allowing for better capital allocation to high-quality infrastructure and commercial real estate [28][30].

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - This week, the REITs market continued its decline, with the CSI REITs Index down 0.1% for the week. The guarantee housing, transportation, ecological environment protection, data center, and energy sectors rose, while other sectors fell. In terms of the weekly percentage changes of major indices, CSI All-Bond > CSI REITs > CSI 300 > CSI Convertible Bond. As of March 20, 2026, the dividend yield of property REITs was 48BP lower than the average dividend yield of CSI Dividend stocks, and the spread between the average internal rate of return of concession-based REITs and the 10-year Treasury yield was 336BP. The underlying assets of REITs continued to diversify, with the first tunnel public offering project approved, filling the gap in the transportation segment, and the first household photovoltaic project listed, demonstrating the innovative breadth of revitalizing existing assets [1]. Market Trends Secondary Market Trends - As of March 20, 2026, the closing price of the CSI REITs (closing) Index was 785.00 points, with a weekly change of -0.1%, performing worse than the CSI All-Bond Index (0.0%) but better than the CSI 300 Index (-2.2%) and the CSI Convertible Bond (-3.2%). Since the beginning of the year, the percentage changes of major indices were in the order of CSI REITs (+0.8%) > CSI All-Bond (+0.6%) > CSI Convertible Bond (+0.1%) > CSI 300 (-1.4%) [2][9]. - In the past year, the return rate of the CSI REITs Index was -8.7%, with a volatility of 6.8%. The return rate was lower than that of the CSI Convertible Bond Index, the CSI 300 Index, and the CSI All-Bond Index; the volatility was lower than that of the CSI 300 Index and the CSI Convertible Bond Index but higher than that of the CSI All-Bond Index. The total market value of REITs on March 20 was 223.9 billion yuan, a decrease of 200 million yuan from the previous week; the average daily turnover rate for the whole week was 0.30%, a decrease of 0.06 percentage points from the previous week [2][12]. - Concession-based REITs outperformed property REITs. As of March 20, 2026, the average weekly percentage changes of property REITs and concession-based REITs were -0.1% and 0.4% respectively. In terms of different project types, REITs in the affordable rental housing, transportation infrastructure, ecological environment protection, new infrastructure, and energy infrastructure sectors rose, while other types of REITs fell [18]. - In terms of specific targets, the top three REITs in terms of weekly percentage increase were CICC Chongqing Liangjiang REIT (+3.18%), Huaxia Beijing Affordable Housing REIT (+2.77%), and CICC Xiamen Anju REIT (+2.38%) [3][20]. - New infrastructure REITs had the highest trading activity. In terms of different project types, new infrastructure REITs had the highest daily turnover rate during the period, with an average daily turnover rate of 0.6%; transportation infrastructure REITs had the highest trading volume share this week, accounting for 22.0% of the total trading volume of REITs [3][24]. - In terms of the capital flow of different REIT products this week, the top three in terms of net inflow of main funds were Harvest JD Warehouse Infrastructure REIT (5.59 million yuan), Huaxia CNNC Clean Energy REIT (5.33 million yuan), and Huaxia Yuexiu Expressway REIT (4.82 million yuan) [3][25]. Primary Market Issuance - From January 1 to March 20, 2026, there were 4 REIT products in the inquired stage, 16 products in the feedback stage, and 5 products in the accepted stage on the exchange [27]. Valuation Tracking - REITs have both bond and equity characteristics. From the bond perspective, under the constraint of mandatory high dividends, the annualized cash distribution rate is of concern. As of March 20, the average annualized cash distribution rate of public REITs was 6.4%. From the equity perspective, the relative net value premium rate, IRR, and P/FFO are used to judge the valuation of REITs. The relative net value premium rate reflects the relationship between the market value and the fair value of the fund, similar to the PB indicator of stocks; IRR is the internal rate of return calculated using the cash flow discount method; P/FFO is the current price divided by the cash flow generated from operations. The relative net value premium rate is a long-term perspective, evaluating the secondary market valuation level from the valuation of the underlying assets; P/FFO is a short-term perspective, valuing the distributable cash flow based on the recent operating conditions of the assets to judge the current investment return rate [29]. - Property REITs and concession-based REITs have significant differences in asset rights, income sources, term characteristics, and risk characteristics. For property REITs, the focus is on the dividend yield, while for concession-based REITs, the focus is on the internal rate of return. As of March 20, 2026, the dividend yield of property REITs was 48BP lower than the average dividend yield of CSI Dividend stocks, and the spread between the average internal rate of return of concession-based REITs and the 10-year Treasury yield was 336BP [31]. Industry News - The first tunnel public REIT in the country was officially approved. On March 16, according to the official website of the Shanghai Stock Exchange, the Dongfanghong Tunnel Co., Ltd. Expressway Closed-end Infrastructure Securities Investment Fund was officially approved. The initiator of the project was Shanghai Infrastructure Construction and Development (Group) Co., Ltd., and the manager was Shanghai Oriental Securities Asset Management Co., Ltd. This project was the first public REIT for tunnel infrastructure in the current market. The underlying asset of the Dongfanghong Tunnel Co., Ltd. Expressway REIT was the Qianjiang Tunnel section of the Qianjiang Channel and Connecting Line Project, with a total route length of 4,450m. The project was expected to raise 4.356 billion yuan [4][36].

1. Report Industry Investment Rating No information provided in the given content. 2. Core Viewpoints of the Report - This week, the external market environment fluctuated sharply. REITs first rose and then fell, similar to the bond market trend. The warehousing sector declined significantly due to short - term negative news. The primary market welcomed the first new product issuance in 2026, and the Dongfanghong Tunnel Expressway REIT released an inquiry announcement. Tianhong Consumer REIT withdrew its application, and Xinghe Commercial Real Estate REIT was accepted. Some high - speed REITs disclosed February operating data, with most showing significant growth in traffic volume [3]. - As of March 20, 2026, 20 REITs have been successfully issued since 2025. This week, 8 first - issue public REITs and 1 expansion - offering REIT made new progress. The current approval process includes 32 first - issue and 4 expansion - offering REITs at different stages [3]. - This week, the CSI REITs Total Return Index closed at 1021.78 points, down 0.13%, outperforming the CSI 300 by 2.05 percentage points and the CSI Dividend by 2.92 percentage points. Property - type REITs fell 0.33%, while franchise - type REITs rose 0.41%. In terms of asset types, the affordable housing, transportation, data center, and environmental protection and water services sectors performed well [3]. - In terms of liquidity, the average daily turnover rates of property - type and franchise - type REITs decreased, and the trading volumes also declined week - on - week. The data center sector was the most active [3]. - In terms of valuation, the yields of property - type and franchise - type REITs from ChinaBond valuation are 4.02% and 4.87% respectively, with the transportation, warehousing and logistics, and park sectors ranking among the top [3]. 3. Summary According to the Directory 3.1 Primary Market: 8 First - Issue Public REITs Made New Progress - Since 2025, 20 REITs have been successfully issued, with a total issuance scale of 40.3 billion yuan. This week, 8 first - issue public REITs made new progress, including the withdrawal of Zhonghang Tianhong Consumer REIT, feedback on several REITs, and the acceptance and registration of others. One expansion - offering REIT, CICC Xiamen Anju REIT, was registered and became effective [3][15][16]. 3.2 Secondary Market: Liquidity Decreased This Week 3.2.1 Market Review: The CSI REITs Total Return Index Fell 0.13% - The CSI REITs Total Return Index closed at 1021.78 points, down 0.13%, outperforming the CSI 300 by 2.05 percentage points and the CSI Dividend by 2.92 percentage points. Property - type REITs fell 0.33%, and franchise - type REITs rose 0.41%. In terms of asset types, the affordable housing (+0.98%), transportation (+0.67%), data center (+0.10%), and environmental protection and water services (-0.05%) sectors performed well [3]. 3.2.2 Liquidity: Both Turnover Rate and Trading Volume Decreased - The average daily turnover rates of property - type and franchise - type REITs were 0.31% and 0.28% respectively, down 5.05 and 7.36 basis points from last week. The trading volumes were 333 million and 94 million shares respectively, down 14.15% and 20.81% week - on - week. The data center sector was the most active [3][27]. 3.2.3 Valuation: The Affordable Housing Sector Had a Higher Valuation - The yields of property - type and franchise - type REITs from ChinaBond valuation were 4.02% and 4.87% respectively. The transportation (5.97%), warehousing and logistics (5.72%), and park (4.84%) sectors ranked among the top [3][29]. 3.3 This Week's News and Important Announcements - **News**: During the Two Sessions, a representative proposed to include REITs in the inter - connectivity to activate the Hong Kong REITs market. Guangdong Hongchuan Smart Logistics plans to issue a REIT with its infrastructure assets. Jinan Urban Development Group's rental housing REIT service procurement project is open for bidding. Shaanxi's Huashan Scenic Area REIT is about to be issued [35]. - **Announcements**: Several high - speed REITs disclosed February operating data, including traffic volume and toll revenue. Some REITs also issued解禁 announcements [36].

1. Report Industry Investment Rating - Not provided in the given content 2. Core Viewpoints of the Report - This week, the external market environment fluctuated sharply. REITs first rose and then fell, similar to the bond market trend. The warehousing sector declined significantly due to short - term negative news. The primary market finally saw the issuance of the first new product in 2026, and the secondary market liquidity decreased [3]. 3. Summary According to the Directory 3.1 Primary Market: 8 Newly - Issued Public REITs Made Progress - As of March 20, 2026, 20 REITs have been successfully issued since 2025, with a total issuance scale of 40.3 billion yuan. This week, 8 newly - issued public REITs made progress, including the withdrawal of the Zhonghang Tianhong Consumption REIT application, and 1 REIT for expansion also made progress, namely the registration of the CICC Xiamen Anju REIT becoming effective [3]. - The Dongfanghong Tunnel High - speed REIT released an inquiry announcement on Thursday evening, with the inquiry date set for March 25, and the inquiry range from 4.012 yuan to 4.700 yuan per share. The Tianhong Consumption REIT application was withdrawn, and the Xinghe Commercial Real Estate REIT was accepted, planning to raise 1.686 billion yuan [3]. 3.2 Secondary Market: Liquidity Decreased This Week 3.2.1 Market Review: The CSI REITs Total Return Index Declined by 0.13% - As of March 20, 2026, the CSI REITs Total Return Index (932047.CSI) closed at 1021.78 points, a decline of 0.13%, outperforming the CSI 300 by 2.05 percentage points and the CSI Dividend by 2.92 percentage points. The year - to - date increase of the CSI REITs Total Return Index was 1.18%, outperforming the CSI 300 by 2.54 percentage points but underperforming the CSI Dividend by 3.70 percentage points [3]. - In terms of project attributes, property - type REITs fell by 0.33% this week, while franchise - type REITs rose by 0.41%. In terms of asset types, the affordable housing (+0.98%), transportation (+0.67%), data center (+0.10%), and environmental protection and water services (-0.05%) sectors performed well [3]. - Among individual bonds, 39 rose and 37 fell this week. CICC Chongqing Liangjiang REIT (+3.18%), Huaxia Beijing Affordable Housing REIT (+2.77%), and CICC Xiamen Anju REIT (+2.38%) led the gains, while Southern SF Logistics REIT (-4.62%), CICC ProLogis REIT (-4.46%), and Huaxia Hefei High - tech Industrial Park REIT (-3.30%) were at the bottom [3]. 3.2.2 Liquidity: Both Turnover Rate and Trading Volume Decreased - The average daily turnover rates of property - type/franchise - type REITs this week were 0.31%/0.28%, down 5.05/7.36 basis points from last week. The trading volumes during the week were 333 million/94 million shares, down 14.15%/20.81% week - on - week. The data center sector was the most active [3]. 3.2.3 Valuation: The Affordable Housing Sector Had a Higher Valuation - According to the ChinaBond valuation yield, the property - type/franchise - type REITs were 4.02%/4.87% respectively. The transportation (5.97%), warehousing and logistics (5.72%), and park (4.84%) sectors ranked among the top three [3]. 3.3 This Week's News and Important Announcements - News: During the Two Sessions, Chen Zhongni proposed to include REITs in the inter - connectivity to activate the Hong Kong REITs market. Guangdong Hongchuan Smart Logistics Co., Ltd. plans to initiate a REIT with certain assets. Jinan Urban Development Group's rental housing REIT service procurement project is open for bidding. Shaanxi's Huashan Scenic Area public REIT is about to be issued and listed [35]. - Announcements: Several REITs released their February 2026 operation data, including vehicle flow and toll revenue. Some REITs also issued restricted share lifting announcements [36].

1. Report Industry Investment Rating No information about the industry investment rating is provided in the report. 2. Core Viewpoints of the Report - Multiple factors such as the diversion of commercial real - estate REITs, concerns about the accelerated pace of primary supply, and the rise in long - term bond interest rates have led to an intensified correction in the REITs market. The liquidity is running at a low level, but the decline has narrowed. The CSI REITs Total Return Index fell 1.7% in the first half of March 2026, with the decline widening compared to the same period last month [4]. - The dividend yield of REITs has caught up with that of dividend - paying stocks. The valuation of equity - type REITs has decreased, while that of concession - type REITs has increased. The internal rate of return (IRR) of both types has increased compared to the end of February [4]. - Two infrastructure REITs projects have been registered and are awaiting issuance. One new commercial real - estate REIT has been reported, and the fundraising scale of new projects has decreased. The market is expected to see an increase in the enthusiasm for offline subscriptions with the issuance of the first project of the year and the progress of commercial real - estate projects [4]. - Annual reports will be released one after another. It is recommended to pay attention to the dividend window in April. After the release of the annual reports, the concentrated dividend season of the year will follow [4]. 3. Summary According to the Directory 3.1 Market Correction Amplifies, Liquidity Decline at Low Level Narrows - **Market Performance**: In the first half of March 2026, the equity market was weak, with the 300 Return Index falling 0.8% and only the CSI Dividend Total Return Index rising 1.5%. The 10 - year Treasury yield continued to rise, reaching 1.83%. Affected by multiple factors, the CSI REITs Total Return Index fell 1.7%, with the decline widening compared to February [10]. - **Sector Performance**: In the first half of March 2026, various types of assets generally corrected, with only the energy sector rising slightly. Equity - type assets had a large decline, with the warehousing and logistics, IDC, and rental - housing sectors falling more than 3%. Concession - type sectors were relatively resistant to decline, and the energy sector rose 0.58% [11][16]. - **Individual Bond Performance**: The proportion of rising and falling individual REITs was 18% and 82% respectively. The National Electric Power Investment New Energy REIT led the rise (+2.58%), while the JD Warehouse REIT led the decline (-10.95%) [20]. - **Turnover Rate**: In the first half of March 2026, the average daily turnover rate of Shanghai and Shenzhen REITs was 0.37%, a slight narrowing of 0.01 percentage points compared to February. The selling pressure of rental - housing assets increased, the trading activity of industrial park and consumer assets continued to cool, and the turnover rate of IDC assets showed an upward trend [26]. 3.2 Dividend Yield Catches Up with Dividend - Paying Stocks, Equity Valuation Decreases while Concession Valuation Increases - **Dividend Yield**: As of March 16, 2026, the dividend yield (TTM) of equity - type REITs was 4.67% (at the 64th percentile), and that of concession - type REITs was 8.46% (at the 73rd percentile). The overall dividend yield of equity - type REITs increased by 0.08 percentage points compared to the end of February, and the dividend yield of consumer REITs reached the 90th percentile of the historical high [31]. - **Comparison with Other Assets**: The spread between the dividend yield of equity - type REITs and the 10 - year Treasury yield was 2.83% (at the 72nd percentile of history), widening by 0.07 percentage points compared to the end of February. The spread between the dividend yield of equity - type REITs and the CSI Dividend yield was 0.00% (at the 78th percentile of history), widening by 0.27 percentage points compared to the end of February, and the dividend yields of the two were equal [36]. - **Valuation**: The latest P/NAV of equity - type REITs was 1.23X, at the 66th percentile of history, and the valuation decreased compared to the end of February. The latest P/FFO of concession - type REITs was 13.45X, at the 55th percentile of history, and the valuation increased compared to the end of February [46]. - **IRR**: The latest IRR of equity - type REITs was 4.2%, at the 42nd percentile of history; the latest IRR of concession - type REITs was 5.2%, at the 32nd percentile of history. The IRRs of both types increased compared to the previous period [51]. 3.3 Two Projects Registered and Awaiting Issuance, New Commercial Fundraising Amount Decreases - **Market Status**: As of March 16, 2026, there were 79 listed REITs in Shanghai and Shenzhen, with a total market value of 222.9 billion yuan. There have been no new REITs issued in the market since 2026 [53]. - **Subscription Yield**: Only the Huaxia Zhonghe Clean Energy REIT was listed in 2026. The offline cash subscription yields for 10 million yuan, 30 million yuan, and 100 million yuan were 0.83 million yuan, 2.48 million yuan, and 8.27 million yuan respectively, and the cumulative offline subscription yield for cash below 100 million yuan was 0.08% [59]. - **Infrastructure REITs**: As of March 16, there were 15 infrastructure REITs projects that had been accepted but not issued. The Dongfanghong Tunnel Intelligent Operation and Maintenance Expressway REIT (initial offering) and the CICC Xiamen Anju REIT (expansion) had been registered and approved. Two projects, Guojin Jize New Energy REIT and Jianxin Tianjin Lingang Development REIT, were newly accepted [63]. - **Commercial Real - Estate REITs**: As of March 16, there were 15 commercial real - estate REITs projects under review. Three new projects were accepted, and five projects received inquiry letters from the exchange. The fundraising scale of newly accepted projects has decreased, concentrating in the range of 1 - 2 billion yuan [66]. - **Bidding**: In the first half of March 2026, there were updates on the bidding progress of 5 public REITs projects, covering multiple fields such as cultural tourism, hotels, and energy [80]. 3.4 Annual Reports to be Released, Recommend Paying Attention to the Dividend Window in April - **Annual Report Release**: As of now, the 2025 annual reports of China Merchants Shekou Rental Housing REIT and Boshi China Merchants Shekou Industrial Park REIT have been released. The Yinhuashangyuanshui Water Conservancy REIT has not lifted the primary - level emergency response for raw water supply, and the CITIC Construction Investment National Electric Power Investment New Energy REIT carried out factoring financing [88]. - **Performance in 2025**: From the perspective of distributable amount, the year - on - year growth rates of Huatai Jiangsu Jiaokong REIT (+21%) and Fuguo Shouchuang Water Service REIT (+27%) in 2025 were the highest. Attention should be paid to the differences between the annual report and the quarterly summary, such as the large impairment provisions for investment real estate of Jianxin Zhongguancun REIT every year [92]. - **Dividend Window**: After the release of the annual reports, April will be the concentrated window period for REITs dividend distribution. There are obvious differences in the distributable amount per unit among different asset categories and projects within the same asset [93]. - **Block Trades**: Since 2026, the activity of block trades in public REITs has cooled down. In the first half of March, there were 61 block trades in the public REITs market, with a total amount of 1.442 billion yuan. Ping An Ningbo Jiaotou REIT had the largest total block - trade amount, and CICC ProLogis REIT had the largest single - transaction amount [98].

Core Viewpoint - The brokerage asset management industry is undergoing profound changes, transitioning from traditional growth models reliant on channel business and non-standard asset expansion to a "true asset management" era due to multiple pressures such as public fund license constraints, low interest rate environments, and insufficient active management capabilities [1] Group 1: Industry Challenges - The industry faces three core challenges: the solidification of public fund license structures, the impact of low interest rates on traditional profit models, and the long-term development of active management capabilities [3][4] - Currently, only 14 brokerage firms or their asset management subsidiaries possess public fund qualifications, limiting the growth potential for those without licenses to focus solely on private equity [3] - The low interest rate environment has fundamentally disrupted previous fixed income strategies, necessitating a shift away from reliance on traditional models [4] Group 2: Strategic Transformation - Brokerages are restructuring their asset management strategies through product strategy reconstruction, business chain collaboration, and rethinking liability logic to create competitive advantages [2] - The focus is shifting towards "multi-asset" management, with firms like Guojin Asset Management emphasizing their capabilities in multi-asset allocation and product customization [8] - There is a growing emphasis on "customer-centric" solutions, with firms adapting to the complex and customized needs of high-net-worth and institutional clients [10][12] Group 3: Competitive Advantages - The brokerage asset management sector is leveraging its full business chain collaboration as a key competitive advantage, differentiating itself from other asset management institutions [11] - Firms are increasingly focusing on customized services and flexible account systems to meet the diverse needs of clients, moving from merely selling products to providing comprehensive account management [12] - The industry is also exploring new growth avenues such as public REITs, which are expected to become significant drivers for expanding public non-cash scale [9]