Group 1: Real Estate Industry - The China Securities Regulatory Commission (CSRC) has initiated a pilot program for commercial real estate REITs, indicating significant development potential for this sector. The market for public REITs in China is estimated to exceed 10 trillion yuan, with the current market size at 219.9 billion yuan, of which commercial real estate accounts for 130.9 billion yuan [12][27]. - The planned commercial real estate REITs will create a multi-tiered market for asset securitization, which will help to broaden financing channels for enterprises, optimize capital structures, and facilitate strategic transformations from developers to asset managers [12][27]. - The commercial real estate REITs are seen as a key practice for constructing a new development model in the real estate sector, focusing on quality and sustainability rather than mere quantity [12][27]. Group 2: Internet and Media Industry - Core consumer brands in the internet and media sector, such as gaming companies and lifestyle brands, are currently trading at a PE ratio below 20x for 2026, indicating a high margin of safety for investors. The structural consumption trend among young users in China remains a significant growth driver [11][12]. - The gaming sector is experiencing a demographic shift, with Generation Z users making up 65% of the market, and there is untapped potential in female-oriented gaming content. Companies like Giant Network are expected to benefit from this trend [11][12]. - The music industry is also highlighted as a growth area, with stable demand for subscription services among young users, and companies are expected to enhance their bargaining power in the face of a fragmented rights market [15]. Group 3: Energy Sector - Guangzhou Development (600098.SH) is positioned as a comprehensive energy service provider, with a diversified business model covering electricity, energy logistics, gas, and renewable energy. The company reported a net profit of 2.159 billion yuan for the first nine months of 2025, a year-on-year increase of 36.1% [14][19]. - The company has a strong dividend history, with a payout ratio consistently above 50% over the past three years, and plans to increase dividends further in 2025 [14][19]. - The energy sector is expected to benefit from stable pricing in coal and gas power generation, with ongoing projects set to enhance profitability [19][20].

Investment Rating - The report maintains an "Overweight" rating for the real estate and property management sectors, indicating a positive outlook for the industry [2]. Core Insights - The initiation of commercial real estate REITs (Real Estate Investment Trusts) by the China Securities Regulatory Commission (CSRC) is expected to significantly enhance the development potential of commercial real estate in China, with a market space exceeding 10 trillion yuan [2]. - The planned commercial real estate REITs will complement existing infrastructure REITs, creating a comprehensive public REITs market in China, where the market capitalization of holding-type real estate and infrastructure assets accounts for approximately 60% and 40% globally [2]. - The pilot program for commercial real estate REITs aims to broaden the underlying asset base to include office buildings and hotels, thereby expanding the scope of asset revitalization [2]. - The establishment of a multi-tiered market for commercial real estate asset securitization will facilitate direct financing for enterprises, optimize capital structures, and provide new options for strategic transformation from developers to asset managers [2]. - The commercial real estate REITs are seen as a crucial vehicle for constructing a new development model in the real estate sector, emphasizing the operational and sustainable development of existing assets [2]. Summary by Sections Investment Opportunities - The report highlights two major opportunities: the elevation of housing policies and the favorable performance of quality commercial enterprises during a monetary easing cycle, which may lead to a revaluation of consumer-oriented commercial real estate assets [2]. - Recommended companies include: 1. Commercial Real Estate: China Resources Land, New Town Holdings, Kerry Properties, Longfor Group, with a focus on Swire Properties and New Town Development 2. Quality Housing Enterprises: Jianfa International, Binjiang Group, China Jinmao, Greentown China 3. Undervalued Recovery Enterprises: Jianfa Shares, China Merchants Shekou, Yuexiu Property, China Overseas Development, Poly Developments 4. Property Management: China Resources Vientiane, Greentown Services, China Merchants Jinling, Poly Property, China Overseas Property 5. Second-hand Housing Agencies: Beike-W, with a focus on I Love My Home [2]. Market Context - The report notes that while the real estate sector in China is expected to continue facing challenges, core cities are likely to stabilize sooner, indicating a potential turning point for the market [2].

1. Report Industry Investment Rating - Not provided in the document 2. Core Views of the Report - On November 28, 2025, after the market closed, the China Securities Regulatory Commission (CSRC) released the "Announcement on the Pilot Program of Commercial Real Estate Investment Trust Funds (Draft for Comment)", planning to introduce a new product, "Commercial Real Estate REITs," in addition to infrastructure REITs. The scope of public - offering REITs will include commercial properties such as commercial complexes, commercial retail, office buildings, and hotels. This is a significant milestone after five years of development [3]. - The CSRC emphasizes the fund manager's active role in the operation and management of commercial real estate, which is expected to shift the domestic commercial real estate from a development - oriented to an operation - oriented model and make the institutional arrangement closer to that of mature international REITs markets [3]. - The review process of REITs may change marginally, potentially simplifying the review chain of commercial real estate REITs and accelerating product expansion [3]. - The launch of commercial real estate REITs provides a market - based financing and exit channel for real - estate enterprises and local state - owned enterprises holding high - quality commercial properties, alleviating their liquidity pressure and supporting the construction of a new real - estate development model [3]. 3. Summary According to the Catalog 3.1 Primary Market: Three Newly Issued Public - Offering REITs Made Progress - As of November 28, 2025, 19 REITs have been successfully issued this year, with a total issuance scale of 38.79 billion yuan, a year - on - year decrease of 24.1%. This week, three newly issued public - offering REITs made progress: the Orient Hong Kong Tunnel Expressway REIT (the first tunnel REIT in China) was accepted, the Ping An Xi'an High - tech Industrial Park REIT was declared, and the AVIC CNNC Energy REIT was accepted [3]. - Currently, there are 11 REITs in the declaration stage, 2 have responded to inquiries, 1 has passed the review, and 1 has been registered and is awaiting listing. In terms of expansion, 5 have been declared, 3 have responded to inquiries, and 3 have passed the review [3]. 3.2 Secondary Market: Liquidity Rebounded This Week 3.2.1 Market Review: The CSI REITs Total Return Index Fell 0.08% - This week, the CSI REITs Total Return Index (932047.CSI) closed at 1040.34 points, down 0.08%, underperforming the CSI 300 by 1.72 percentage points and outperforming the CSI Dividend Index by 0.08 percentage points. The year - to - date increase of the CSI REITs Total Return Index is 7.49%, underperforming the CSI 300 by 7.55 percentage points and outperforming the CSI Dividend Index by 8.13 percentage points [4]. - By project attribute, equity - type REITs fell 0.02% this week, and concession - type REITs fell 0.43%. By asset type, data centers (+1.84%), affordable housing (+0.77%), consumption (-0.13%), and warehousing and logistics (-0.30%) sectors performed well [4]. - Among individual bonds, 34 rose and 42 fell this week. CICC Xiamen Anju REIT (+3.65%), Huaxia Capital First - Initiative Outlets REIT (+2.67%), and Huaxia Beijing Affordable Housing REIT (+2.52%) led the gainers, while Huatai Nanjing Jianye REIT (-5.92%), CICC Chongqing Liangjiang REIT (-4.55%), and China Merchants Expressway REIT (-4.41%) were the biggest losers [4]. 3.2.2 Liquidity: The Liquidity of the Affordable Housing Sector Increased Significantly - The average daily turnover rates of equity - type and concession - type REITs this week were 0.51% and 0.47% respectively, up 7.22BP and 2.49BP from last week. The trading volumes this week were 490 million and 157 million shares respectively, up 16.59% and 15.38% week - on - week. The affordable housing sector was the most active [4]. 3.2.3 Valuation: The Affordable Housing Sector Had a Higher Valuation - The ChinaBond valuation yields of equity - type and concession - type REITs were 3.95% and 4.17% respectively [29]. 3.3 This Week's Important News and Announcements - On November 25, 2025, the bidding announcement for the fund manager of the infrastructure REITs of the Southern Xinjiang Energy Group was released. The service location is Alar City, the service period is 3 years, and the opening time is December 16 [34]. - On November 26, 2025, the winning candidate for the public - offering REITs project of the Lanzhou Thermal Group was announced. The first winning candidate is Dongxing Securities, with a consulting service fee of 2.8 million yuan, a fund management fee of 0.193% per year, and an ABN underwriting fee of 0.13% per year [34]. - On November 27, 2025, the National Development and Reform Commission (NDRC) stated that it is actively promoting the expansion of infrastructure REITs to more industries and asset types such as urban renewal facilities, hotels, sports stadiums, and commercial office facilities, and will continue to cooperate with the CSRC to optimize the application and recommendation process [34]. - On November 28, 2025, the CSRC drafted and solicited public opinions on the "Announcement on the Pilot Program of Commercial Real Estate Investment Trust Funds", which contains eight articles, emphasizing the manager's operation responsibility and other aspects [34].