Core Viewpoint - The public REITs market in China is experiencing significant growth with multiple "first" products being launched, indicating a positive trend in capital market support for energy transition and infrastructure investment [1][2][3] Group 1: Market Performance - As of August 1, the CSI REITs All-Return Index has increased by over 13% this year, outperforming major A-share indices such as the CSI 300 and CSI 500 [3] - Among the more than 70 listed public REITs, only 2 have reported negative returns this year, showcasing the overall strong performance of the sector [3] - The public REITs market's total market capitalization surpassed 200 billion yuan by the end of June, covering various asset types including industrial parks, logistics, data centers, and energy infrastructure [3] Group 2: Recent Listings - The first central enterprise natural gas power public REIT, Huaxia Huadian Clean Energy REIT, was successfully listed on August 1, marking a milestone in capital market support for energy transition [1] - The first central enterprise logistics REIT, Bank of China Zhongwaiyun Logistics REIT, was listed on July 29, with its underlying assets consisting of six logistics projects [1] - On July 25, Chuangjin Hexin Shounong REIT was listed, achieving a record subscription amount of 231.6 billion yuan, indicating strong market interest [2] Group 3: Investment Strategies - Analysts suggest that the recent valuation adjustments in public REITs present new investment opportunities, particularly in cash flow stable "debt-like" products and high-yield potential assets [4] - The focus should be on projects with stable cash flows, strong support from original rights holders, and stable lease agreements, especially in municipal environmental and energy sectors [4] - The normalization of public REITs issuance is expected to enhance market ecology and diversify asset types available for investment [4]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints - This week, the China Securities REITs Index declined. The performance of property - type REITs was stronger than that of franchise - type REITs. The average weekly price changes of property - type REITs and franchise - type REITs were - 1.8% and - 2.6% respectively. All types of REITs in the market closed lower, with the smallest declines in park, transportation, and warehousing and logistics REITs. As of July 25, the average annualized cash distribution rate of public REITs was 5.9%, significantly higher than the current static yields of mainstream fixed - income assets. The dividend yield of property REITs was 138BP lower than the average dividend yield of CSI Dividend stocks, and the spread between the average internal rate of return of franchise - type REITs and the ten - year Treasury yield was 226BP [1]. - On July 25, the CICC Jinhua Xinnong Industrial Park REIT was successfully listed on the Shanghai Stock Exchange, with a first - day gain of 28.47%. The fund's issuance scale was 3.685 billion yuan, with a 16 - year term. The underlying asset is the "Shounong Yuan Center", which is a significant addition to the public REITs market [4]. 3. Summary by Related Catalogs 3.1 Secondary Market Trends - As of July 25, 2025, the closing price of the China Securities REITs (closing) Index was 860.11 points, with a weekly change of - 1.79%. It performed worse than the China Securities Convertible Bond Index (+2.14%), the CSI 300 Index (+1.69%), and the China Securities All - Bond Index (-0.49%). Year - to - date, the ranking of the price changes of major indices was: China Securities Convertible Bond Index (+11.8%) > China Securities REITs Index (+8.9%) > CSI 300 Index (+4.9%) > China Securities All - Bond Index (+0.9%). In the past year, the return rate of the China Securities REITs Index was 9.8%, with a volatility of 7.1%. The total market value of REITs increased to 204.7 billion yuan on July 25, an increase of 200 million yuan from the previous week. The average daily turnover rate for the whole week was 0.72%, up 0.17 percentage points from the previous week [2][10]. - All types of REITs closed lower. Property - type REITs and franchise - type REITs had average weekly price changes of - 1.8% and - 2.6% respectively. Among different project types, the three with the smallest average declines were park infrastructure (-0.9%), transportation infrastructure (-1.4%), and warehousing and logistics (-1.7%). The top three REITs in terms of weekly gains were Bosera Tianjin Binhai New Area Industrial Park REIT (+8.49%), China Merchants Science and Technology Innovation REIT (+3.79%), and Huatai Jiangsu Expressway REIT (+2.20%). Park - type REITs had the highest trading activity, with an average daily turnover rate of 1.7% and an trading volume accounting for 31.1% of the total REIT trading volume. The top three REITs in terms of net inflow of main funds were CICC Jinhua Xinnong REIT (88.48 million yuan), China Asset Management Shenzhen International REIT (4.95 million yuan), and Hongtu Innovation Yantian Port REIT (4.9 million yuan) [3]. 3.2 Primary Market Issuance - As of July 25, 2025, there was 1 REIT product in the declared stage, 2 in the inquiry stage, 7 in the feedback stage, 6 that had passed and were waiting for listing, and 6 first - issue products that had passed and were already listed on the exchange [25]. 3.3 Valuation Tracking - From the perspective of debt nature, as of July 25, the average annualized cash distribution rate of public REITs was 5.9%, significantly higher than the current static yields of mainstream fixed - income assets. From the perspective of equity nature, the relative net value premium rate, IRR, and P/FFO were used to judge the valuation of REITs. The relative net value premium rate reflects the relationship between the market value and fair value of the fund, similar to the PB indicator of stocks; IRR is the internal rate of return calculated by 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 indicator, while P/FFO is a short - term one [27]. - As of July 25, 2025, the dividend yield of property REITs was 138BP lower than the average dividend yield of CSI Dividend stocks, and the spread between the average internal rate of return of franchise - type REITs and the ten - year Treasury yield was 226BP [30]. 3.4 Industry News - On July 22, CITIC Construction Investment assisted the Inner Mongolia Energy Co., Ltd. of the State Power Investment Corporation to establish the "State Power Investment - Inner Mongolia Company Energy Infrastructure Investment Daban Power Generation 2025 Asset - Backed Special Plan", with a scale of 2.992 billion yuan, a subscription multiple of 2.60 times, and the issuance interest rate reaching a new low for energy central - enterprise REITs. - On July 25, the CICC Jinhua Xinnong Industrial Park REIT was listed on the Shanghai Stock Exchange, with a first - day gain of 28.47%. It is the 69th public REIT in China, the 19th park REIT, and the first science and technology park REIT focusing on "headquarters economy" [36].

Core Insights - The public REITs market has seen a significant price increase, with the total market capitalization surpassing 200 billion yuan for the first time, reaching 2019.9 billion yuan as of June 5 [2][8] - The market indices, including the CSI REITs closing index and the CSI REITs total return index, have shown year-on-year increases of 10.7% and 18.05% respectively [2] - The performance of different asset types indicates that transportation infrastructure and municipal water conservancy REITs have outperformed others [1][2] Market Performance - As of June 6, the CSI REITs total return index rose by 1.58%, while the closing index increased by 1.55% [1] - The REITs total index outperformed the CSI 300 index by 0.69 percentage points and the CSI All Bond Index by 1.41 percentage points, but underperformed the Nanhua Commodity Index by 0.24 percentage points [1] - Among the 66 listed REITs, 54 experienced a week-on-week increase, with the top three performers being highway REITs: China Merchants Highway REIT (+7.96%), Huatai Jiangsu Expressway REIT (+5.90%), and Ping An Ningbo Traffic REIT (+5.84%) [3][1] Asset Type Performance - The property-type REITs saw a 0.9% increase, while operating rights-type REITs rose by 3.2% [2] - The total return indices for various sectors showed significant gains, particularly in highways (+3.34%), municipal environmental protection (+1.67%), and consumption (+1.38%) [2] Trading Activity - The trading volume for public REITs reached 20.9 billion yuan last week, with water conservancy REITs leading in average turnover rates [6] - The top three REITs by trading volume were Huaxia Hefei High-tech REIT, Bosera Shekou Industrial Park REIT, and Huaxia China Communications Construction REIT [6] Policy and Regulatory Developments - Recent policy developments include a notification from the Shanghai Development and Reform Commission aimed at enhancing project reserves and promoting the quality and expansion of infrastructure REITs [8] - Four new projects submitted feedback to regulatory inquiries, with all experiencing valuation adjustments [8][9] - Notable valuation adjustments included a 7.1% decrease for Chuangjin Hexin Shifang Industrial Park REIT and an 11.4% decrease for Nanfang Runze Technology Data Center REIT [9]

Report Industry Investment Rating No relevant content provided. Core Viewpoints - This week, the China Securities REITs Index closed up, and the total market capitalization of REITs exceeded 200 billion yuan. Three public REITs made new progress, and the public REITs market continued to expand [1]. - This week, the performance of concession - based REITs was stronger than that of property - based REITs. The average weekly price changes of property - based REITs and concession - based REITs were +0.9% and +3.0% respectively [1][3][18]. - In terms of the comparison of weekly price changes of major indices, China Securities REITs > China Securities Convertible Bonds > CSI 300 > China Securities All - Bond. The average daily turnover rate of REITs throughout the week increased slightly compared with the previous week [1]. - All types of REITs in the entire market closed up, with energy, transportation, and consumer REITs having the largest increases [1][3][18]. - As of June 6, the average annualized cash distribution rate of public REITs was 5.8%, higher than the current static yields of mainstream fixed - income assets. Currently, the dividend yield of property - based REITs was 315 BP 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 bond yield was 167 BP [1][29]. Summary by Related Catalogs Market Trends Secondary Market Trends - As of June 6, 2025, the closing price of the China Securities REITs (closing) Index was 881.85 points, with a weekly price change of +1.6%, outperforming the China Securities Convertible Bonds Index (+1.1%), the CSI 300 Index (+0.9%), and the China Securities All - Bond Index (+0.2%). Since the beginning of the year, the price change rankings of major indices were: China Securities REITs (+11.7%) > China Securities Convertible Bonds (+4.7%) > China Securities All - Bond (+0.7%) > CSI 300 (-1.5%) [2][8]. - As of June 6, 2025, the one - year return rate of the China Securities REITs Index was 11.1%, and the volatility was 7.0%. The return rate was higher than those of the CSI 300 Index, the China Securities Convertible Bonds Index, and the China Securities All - Bond Index; the volatility was lower than those of the CSI 300 Index and the China Securities Convertible Bonds Index, but higher than that of the China Securities All - Bond Index. The total market capitalization of REITs rose to 202.1 billion yuan on June 6, an increase of 3.9 billion yuan from the previous week; the average daily turnover rate throughout the week was 0.60%, an increase of 0.04 percentage points from the previous week [2][13]. - Energy, transportation, and consumer REITs led the gains. From the perspective of different project attributes, the average weekly price changes of property - based REITs and concession - based REITs were +0.9% and +3.0% respectively. From the perspective of different project types, all types of REITs closed up, with the three project types with the largest average increases being energy (3.7%), transportation (3.5%), and consumer (2.4%). The top three REITs in terms of weekly price increases were China Merchants Expressway REIT (+7.96%), Huatai Jiangsu Expressway REIT (+5.90%), and Ping An Ningbo Expressway REIT (+5.84%) [3][18][22]. - Water conservancy REITs had the highest trading activity. In terms of different project types, water conservancy facilities were the most actively traded this week, and transportation infrastructure had the highest proportion of trading volume. The former had an average daily turnover rate of 1.0% during the period, and its trading volume accounted for 1.6% of the total REITs trading volume. The latter had an average daily turnover rate of 0.7% during the period, and its trading volume accounted for 34.3% of the total REITs trading volume. In terms of the capital flow of different REIT products this week, the top three in terms of net inflow of main funds were Ping An Guangzhou Expressway REIT (8.32 million yuan), China Merchants Huaxia Expressway REIT (7.44 million yuan), and Huaxia Hefei High - tech REIT (5.39 million yuan) [3][24]. Primary Market Issuance - As of June 6, 2025, there was 1 REIT product in the declared stage, 1 in the questioned stage, 2 in the accepted stage, 7 in the feedback stage, 5 passed and awaiting listing, and 3 first - issued products that had passed and were listed on the exchange [26]. 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 focused on. As of June 6, the average annualized cash distribution rate of public REITs was 5.8%, significantly higher than the current static yields of mainstream fixed - income assets [28]. - From the equity perspective, the relative net asset value premium rate, IRR, and P/FFO are used to judge the valuation of REITs. The relative net asset value premium/discount rate = closing price / latest net value - 1, reflecting the relationship between the market value and fair value of the fund, similar to the PB indicator of stocks; IRR is the internal rate of return calculated using the discounted cash flow method; P/FFO is the current price / cash flow generated from operations. The relative net asset value premium/discount rate is a long - term perspective, evaluating the secondary - market valuation level from the valuation of underlying assets; P/FFO is a short - term perspective, valuing the distributable cash flow from the recent operating conditions of assets and judging the current investment return rate [28]. - There are obvious differences between property - based REITs and concession - based REITs in terms of asset rights, sources of income, term characteristics, and risk characteristics. For property - based REITs, the focus is on the dividend yield, while for concession - based REITs, the focus is on the internal rate of return. As of June 6, 2025, the dividend yield of property - based REITs was 315 BP 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 bond yield was 167 BP [29]. Industry News - On May 30, BOC Sinotrans Warehouse Logistics REIT was registered. Its first - issue assets focus on important logistics nodes in the Yangtze River Delta, Beijing - Tianjin - Hebei, and Sichuan - Chongqing regions, with strong regional logistics demand, a stable customer base, and cargo throughput. The first - issue infrastructure assets to be invested in total 6, with a total construction area of 305,400 square meters, a leasable area of 299,700 square meters, and a leased area of 286,500 square meters, with a rental rate of 95.59%. As of December 31, 2024, the project's income - based valuation was 1.097 billion yuan [35]. - On May 30, the expansion of Guotai Junan Lingang Industrial Park REIT was officially approved by the CSRC. The underlying assets of the expansion project are the Caohejing Science and Technology Oasis Kangqiao Park in the southern part of Zhangjiang Science City, with a construction area of about 182,400 square meters and a leasable area of 104,600 square meters. The project is valued at 1.532 billion yuan [35]. - On June 3, the Shanghai Development and Reform Commission issued the "Notice on Further Strengthening Project Reserve and Promotion to Promote the Quality Improvement and Expansion of Infrastructure REITs in the City", establishing a dynamic reserve library of "willing to promote all", focusing on key infrastructure areas, sorting out high - quality assets with clear ownership, stable returns, and market - oriented operation capabilities, strengthening pre - cultivation, simplifying the evaluation process for expansion projects of the same sponsor, optimizing project review and recommendation, improving the efficiency of declaration and issuance, and enriching the supply of issuable assets [35]. - On June 3, Southern WanGuo Data REIT and Southern Runze Technology REIT completed the exchange feedback responses, adjusted the assessment base date to March 31, 2025, with the valuation reduced by about 12% compared with the initial assessment, and disclosed the energy - saving renovation plans for 2027 and 2035, adding an operation efficiency improvement path for IDC - type assets [35]. - On June 3, CICC China Greentown Commercial REIT was approved by the CSRC, further enriching the consumer infrastructure REITs landscape. The underlying asset of the project, the Lingxiu City Guihe Shopping Center, is located at the intersection of the Second Ring South Road and Yingxiongshan Road in the central district of Jinan City, Shandong Province. The latest valuation is 1.53 billion yuan [35][36].