Investment Rating - The report maintains a "Positive" rating for the real estate and property management sectors [3][4]. Core Insights - The real estate market is showing signs of recovery with an increase in new home transactions, particularly in first and second-tier cities, while third and fourth-tier cities are experiencing a decline [3][4]. - Recent government policies are aimed at stabilizing the real estate market, including interest rate adjustments and housing subsidies [28][29]. - The report highlights the potential for quality real estate companies to recover profits more quickly due to improved market conditions and lower valuations [3][4]. Industry Data Summary New Home Transactions - In the week of March 21-27, 2026, new home sales in 34 key cities totaled 3.691 million square meters, a week-on-week increase of 42.8% [3][4]. - Year-on-year, new home sales in March 2026 decreased by 12.6% compared to March 2025, with first and second-tier cities down 8.4% and third and fourth-tier cities down 49.2% [5][6]. Second-Hand Home Transactions - In the same week, second-hand home sales in 13 key cities reached 1.338 million square meters, a week-on-week increase of 3.9% [11][12]. - Cumulatively, second-hand home sales in March 2026 decreased by 18.9% compared to March 2025 [11][12]. Inventory and Supply - In the week of March 21-27, 2026, 15 key cities launched 550,000 square meters of new homes, with total sales of 1.4 million square meters, resulting in a sales-to-launch ratio of 2.54 [21][22]. - The total available residential area in these cities was 87.142 million square meters, a decrease of 0.96% week-on-week [21][22]. Policy and News Tracking - The People's Bank of China announced the one-year Loan Prime Rate (LPR) at 3.0% and the five-year LPR at 3.5% [28][29]. - Various cities, including Guangzhou and Hangzhou, have introduced housing purchase subsidies, with the highest reaching 100,000 yuan per unit [28][29]. - The first land auction in Xiamen for 2026 concluded with three residential plots sold for a total of 3.96 billion yuan [28][29]. Company Performance - Several real estate companies reported their 2025 annual performance, with notable results including: - Kerry Properties: Total revenue of 19.57 billion HKD (+0.4%), net profit of 0.94 billion HKD (+16%) [34][35]. - China Overseas: Total revenue of 36.87 billion CNY (-19.7%), net profit of 0.31 billion CNY (-68.1%) [34][35]. - Longfor Group: Total revenue of 97.3 billion CNY (-23.7%), net profit of 1.02 billion CNY (-90.2%) [34][35].

Investment Rating - The report maintains a "Positive" rating for the real estate and property management sectors [3][4]. Core Insights - The report indicates that the real estate sector is approaching a bottom in its fundamentals after a deep adjustment, with recent policies aimed at stabilizing the market [3][4]. - The report highlights a significant increase in new home transactions, with a week-on-week increase of 42.8% in 34 key cities, and a notable recovery in first and second-tier cities [4][5]. - The report emphasizes the importance of quality real estate companies and commercial properties, recommending several firms for investment [3][4]. Industry Data Summary New Home Transaction Volume - In the week of March 21-27, 2026, new home transactions in 34 key cities totaled 3.691 million square meters, a week-on-week increase of 42.8% [4][5]. - Year-on-year, new home transactions in March 2026 decreased by 12.6% compared to March 2025, with first and second-tier cities showing a decline of 8.4% [5][6]. Second-Hand Home Transaction Volume - In the same week, second-hand home transactions in 13 key cities reached 1.338 million square meters, reflecting a week-on-week increase of 3.9% [11][12]. - Cumulatively, second-hand home transactions in March 2026 decreased by 18.9% compared to March 2025 [11][12]. Inventory and Supply - In the week of March 21-27, 2026, 15 key cities launched 550,000 square meters of new homes, with total sales of 1.4 million square meters, resulting in a sales-to-launch ratio of 2.54 [22][23]. - The available residential area in these cities was 87.142 million square meters, showing a week-on-week decrease of 0.96% [22][23]. Policy and News Tracking - The People's Bank of China announced the loan market quotation rate (LPR) for one year at 3.0% and for five years at 3.5% [30][31]. - Various local governments have introduced policies to stimulate home purchases, including subsidies of up to 100,000 yuan per unit in Hangzhou [30][31]. - The report notes the successful auction of residential land in Xiamen, with total sales amounting to 3.96 billion yuan [30][31]. Company Performance Overview - Several real estate companies reported their 2025 annual performance, with notable figures including Kerry Properties with a total revenue of HKD 19.57 billion (+0.4%) and a net profit of HKD 0.94 billion (+16%) [36][37]. - China Overseas Land & Investment reported a revenue of 36.87 billion yuan (-19.7%) and a net profit of 0.31 billion yuan (-68.1%) [36][37]. - Longfor Group's revenue was 97.3 billion yuan (-23.7%) with a net profit of 1.02 billion yuan (-90.2%) [36][37].

Group 1: REITs Product Innovation - First port public REITs application: On February 25, the "Jianxin Tianjin Lingang Port REIT" was officially applied, which is the first port public REITs in China with port infrastructure as the underlying asset. Beibu Gulf Port Co., Ltd. also announced the application for port public REITs, which is conducive to opening up new equity financing channels for the port industry [2] - Acceleration of commercial real - estate REITs: Since the pilot of commercial real - estate REITs started at the end of last year, 11 applications were made in 2026, with an expected fundraising scale of over 40 billion yuan. The regulatory authorities are accelerating the review, and its official launch is approaching [3] Group 2: Market Issuance Situation Full - market issuance - ABS issuance slowdown: In January 2026, 165 asset - securitized products were issued in the whole market, with a total scale of 142.688 billion yuan, about half of the previous period. The average issuance cost of some product categories is relatively high [4] - Product secondary stratification: The secondary stratification ratio of supply - chain accounts, intellectual property, and personal consumer loans does not exceed 10%. The secondary stratification ratio of different products in small - business loans and leasing assets varies greatly [5] Bank - to - bank and exchange - market issuance - Bank - to - bank market ABS: One product was issued, with a scale of 3.793 billion yuan, a nearly 90% decrease from last month. The product's underlying asset is personal auto loans, with a priority rating of AAAsf and a coupon rate of 1.75%, and a secondary stratification ratio of 10% [9] - Transaction Association ABN: 40 products were issued, with a scale of 29.43 billion yuan, a 54% decrease from last month. The coupon rate of the disclosed priority products ranges from 1.77% to 2.90%. 10 products have no secondary level, accounting for 25% [9] - Private REITs: 4 private REITs were issued. 7 products have no secondary level, accounting for 6%. The secondary stratification ratio of the remaining products ranges from 0.04% to 17% [13] Exchange - market issuance - Exchange ABS: 124 products were issued, with a scale of 197.766 billion yuan, a 45% decrease from last month. The priority credit ratings cover AAAsf, AA+sf, and AAsf, with a maximum coupon rate of 3.90% [28] Group 3: Secondary - market Transaction - ABS product trading slowdown: The trading of ABS products in the secondary market has become less active. Personal auto loans and non - performing loans have relatively large trading volumes, while other product categories have low trading activity [15] - Bank - to - bank market ABS trading: The trading volume is 7.828 billion yuan, and the trading enthusiasm has significantly decreased [15] - Transaction Association ABN trading: The trading volume is 4.6585 billion yuan, and the trading scale has also decreased [16] - Exchange ABS trading: The trading volume is 105.154 billion yuan, and the trading scale has decreased compared with last month. The Shanghai Stock Exchange and Shenzhen Stock Exchange traded 78.628 billion yuan and 26.526 billion yuan respectively [18] Group 4: Market Stock Data - As of the end of January 2026, the stock scale of listed public REITs is 215.103 billion yuan; the stock scale of US REITs with infrastructure as the underlying asset is 503.136 billion yuan; the total stock scale of infrastructure - related REITs products is about 718.239 billion yuan [7]

Investment Rating - The report maintains an "Overweight" rating for the real estate development and real estate services sectors [7]. Core Insights - The regulatory framework for commercial real estate REITs has shifted towards a more detailed and compliance-focused approach, emphasizing investor protection and operational management quality, which is expected to enhance the investment value of commercial real estate REITs [4][28]. Summary by Relevant Sections Regulatory Focus - The regulatory authorities are concentrating on compliance, operational stability, valuation prudence, and investor protection mechanisms during the review process [2][8]. - Key areas of scrutiny include compliance with fire safety, land use, asset ownership, and the rationality of core valuation parameters such as occupancy rates and rental growth [2][8]. Industry Differentiation - The report identifies three main asset types: retail, office buildings, and hotels, each with distinct operational logic and revenue structures, leading to differentiated regulatory focus [3][23]. - For retail, the emphasis is on operational sustainability; for office buildings, the focus is on cash flow stability and tenant concentration risks; and for hotels, the scrutiny is on operational data and brand asset arrangements [3][24][25][26]. Impact on the Industry - The regulatory measures are expected to promote the standardization of REITs and shift the focus of commercial real estate towards operational excellence [4][28]. - The detailed inquiries signal that the core value of commercial real estate REITs lies in their ability to generate long-term stable cash flows, which may lead to a revaluation of quality assets [4][28]. Investment Recommendations - The report suggests that the regulatory scrutiny will enhance the standardization of the REITs market, safeguarding investor interests and increasing the variance in asset management premiums, thereby improving the investment value of commercial real estate REITs [5][30]. - Entities with mature operational systems and complete compliance procedures are expected to have a competitive advantage in the issuance of REITs [5][30].

Investment Rating - The report maintains an "Outperform" rating for the real estate industry [1] Core Insights - The first batch of commercial real estate REITs involves diverse assets and issuers, with 14 applications totaling over 40 billion yuan, covering office buildings, shopping centers, outlets, hotels, and mixed-use properties [2][11] - The valuation of these REITs is optimistic, with cash flow growth rates for most commercial retail assets ranging from 3.3% to 3.98%, while hotel REITs show varied predictions [2][21] - The report emphasizes the importance of various metrics for hotel investments, including occupancy rates, average daily rates, and GOP Margin, indicating a shift in the hotel industry towards optimizing existing assets rather than expansion [34][35] Summary by Sections Overview of Commercial Real Estate REITs - As of February 2026, 13 commercial real estate REITs have been filed with the Shanghai Stock Exchange and 1 with the Shenzhen Stock Exchange, with a total fundraising target exceeding 40 billion yuan [11] - The assets involved are diverse, including office buildings, shopping centers, outlets, hotels, and mixed-use properties, with a significant presence of mixed assets [11][12] Investment Value Analysis of Hotels, Offices, and Mixed-Use Properties - The report identifies key indicators for hotel investments, such as occupancy rates, average room prices, and GOP Margin, highlighting the operational differences among various hotel types [34][35] - The office market in first-tier cities is currently experiencing oversupply, and the report suggests that office REITs may be comparable to R&D office park REITs [2][21] - The report notes that the valuation of mixed-use properties presents both risk diversification and interdependence challenges, potentially forming a complementary "stability + growth" combination in REIT valuation [2] Investment Recommendations - The report suggests that high-quality commercial real estate REITs, such as Guotai Junan and CITIC Construction Investment, have significant allocation value [2] - It encourages active monitoring of companies with rich commercial real estate resources and quality management operators, including China Resources Land and China Overseas Development [2]

Group 1 - The core view of the report indicates that the REITs market experienced a peak in trading volume in January 2026, followed by a significant decline due to the upcoming Spring Festival, with the weekly turnover rate dropping to 0.33%, the lowest level in the first two months of 2026 [2][6][7] - The report highlights that most REITs projects rebounded from low levels in January 2026 but faced a correction in February, with data centers and transportation sectors performing well, while other sectors like parks and consumer-related REITs saw significant declines [7][8] - The report suggests that the market will increasingly differentiate based on the quality of underlying assets, with data center REITs likely to receive valuation premiums due to AI computing demand, while park-related projects may struggle to see valuation improvements in the short term [8][9] Group 2 - The report notes a seasonal increase in wealth management products, with the total scale reaching 33.3 trillion yuan by the end of February 2026, an increase of 0.8 trillion yuan from the previous month, driven by low deposit rates and year-end bonuses [11][12] - The average annualized yield for fixed-income wealth management products fell in February 2026, with the upper limit at 2.69% and the lower limit at 2.16%, indicating a trend towards lower yields in a low-interest-rate environment [12][13] - The report anticipates that the wealth management scale could grow by approximately 3 trillion yuan in 2026, supported by favorable market conditions and seasonal factors [11][12] Group 3 - The report indicates a contraction in the supply of perpetual bonds in February 2026, with no new issues and a total repayment amount of approximately 61 billion yuan, reflecting a decrease compared to previous months [15][16] - The average credit spread for different ratings of perpetual bonds shows that AA- rated bonds have a significantly higher average credit spread compared to other ratings, indicating a higher risk pricing capability for lower-rated products [16][17] - The report recommends focusing on long-term bonds (5Y/10Y) with high credit spreads, particularly AA+ rated perpetual bonds, as they present potential investment opportunities [19]

Group 1: Oil Price Impact on Debt Market - The current oil price increase has limited impact on the debt market, with the main trend being bank-led allocation. After the quarter-end, this trend may become more pronounced [11] - Rising prices have not driven improvements in corporate profitability, and monetary policy is unlikely to respond effectively to external price changes, resulting in limited overall impact on interest rates [11] - Financing demand remains insufficient, leading to increased deposits and decreased loan growth, which creates a loose funding environment and constrains interest rate ceilings [11] Group 2: Fiscal Policy Observations - The 2026 fiscal revenue budget growth rate is slightly increased, while expenditure growth remains stable. The fiscal revenue growth target for 2026 is set at 2.2%, significantly lower than the nominal GDP growth rate [13] - The expenditure budget for 2026 is projected to grow by 4.4%, indicating a steady fiscal spending approach [13] Group 3: Coal and Energy Market Insights - Brent crude oil prices surged by 27.88% to $92.69 per barrel, while Newcastle coal prices increased by 15.61% to $137 per ton, driven by geopolitical tensions and supply constraints [18] - The demand for coal is expected to rise as countries shift towards coal power for energy security, particularly in East Asia, which may push Asian coal prices higher [18] - Investment recommendations include focusing on companies like China Coal Energy, Yanzhou Coal Mining, and China Shenhua Energy [18] Group 4: Real Estate Market Analysis - The 2026 government work report emphasizes a stable approach to real estate policies, with a focus on maintaining market stability and supporting major projects [24] - The report indicates that the fiscal policy will continue to support consumption and investment in human resources, with a significant amount of special bonds expected to be used for land acquisition [24] - Investment suggestions include real estate development companies such as Greentown China, China Overseas Land & Investment, and Poly Developments [25] Group 5: Textile and Apparel Sector - Bosideng is expected to achieve a revenue growth of 4-5% for FY2026, driven by effective cost management and product optimization [28] - The company anticipates a slight increase in gross margin due to structural improvements, with net profit growth expected to outpace revenue growth [28] - Investment outlook remains positive, with a "buy" rating maintained based on projected earnings growth [29]

新城發展控股有限公司（「本公司」）董 事（「董 事」）會（「董事會」）欣 然 公 佈，為 響 應 中華人民共和國（「中 國」）相 關 部 門 發 佈 的 利 好 政 策，進 一 步 提 升 本 公 司 子 公 司 新城控股集團股份有限公司（「新城控股」）（其A股於上海證券交易所（「上交所」） 上 市，證 券 代 碼：601155）的 不 動 產 經 營 專 業 能 力、優 化 其 資 本 結 構 以 及 增 強 其 核 心 競 爭 力 及 可 持 續 發 展 能 力，新 城 控 股 於2026年3月6日 宣 佈，已 啟 動 以 其 商 業不動產項目作為底層資產的商業不動產投資信託基金（「商業不動產REITs」） 申報公開發行工作（「新城控股公告」）。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 SEAZEN GROUP LIMITED 新城發展控股有限公司 （於 開 曼 群 島 註 冊 成 ...

Investment Rating - The report maintains an "Accumulate" rating for the industry [5] Core Insights - The C-REITs market is experiencing a correction, with the overall market capitalization of listed REITs at approximately 224.98 billion yuan and an average market cap of about 2.8 billion yuan per REIT [2][11] - The report highlights the performance of various REIT sectors, noting that energy infrastructure REITs performed relatively well, while data center and logistics REITs saw significant declines [2][11] - The report emphasizes the recent approval of the New City Wuyue commercial real estate REIT, which aims to raise 1.625 billion yuan, indicating a growing interest in commercial real estate REITs [3][12] Summary by Sections REITs Index Performance - The CSI REITs total return index fell by 0.79% this week, closing at 789.8 points, while the total return index for CSI REITs also decreased by 0.79%, closing at 1027.6 points [1][9] - Year-to-date, the CSI REITs total return index has increased by 1.76% [1][9] C-REITs Secondary Market Performance - The secondary market for C-REITs showed an overall decline, with 18 REITs rising and 59 falling, resulting in an average weekly decline of 1.07% [2][11] - Specific sector performance indicated that the logistics and data center REITs experienced the largest declines, with respective weekly changes of -1.85% and -3.58% [2][11] REITs Valuation Performance - The internal rate of return (IRR) for listed REITs showed significant differentiation, with the top three being Ping An Guangzhou Guanghe REIT (11%), E Fund Guangkai Industrial Park REIT (9.8%), and Huaxia China Communications Construction REIT (9.6%) [3][12] - The price-to-net asset value (P/NAV) ratio for REITs ranged from 0.7 to 1.8, with the highest being Jiashi Wumart Consumption REIT and Huaxia Anbo Warehouse REIT, both at 1.8 [3][12] Investment Recommendations - The report suggests three main investment strategies: 1. Focus on high-quality undervalued projects under policy themes, particularly in high-energy cities [3][12] 2. Consider the timing for investing in low-cycle assets like affordable housing, which have already been recognized by the market [3][12] 3. Monitor the expansion of REITs alongside new issuances, particularly those with ample asset reserves and quality projects [3][12]

Investment Rating - The report maintains an "Accumulate" rating for the industry [5] Core Insights - The C-REITs market is experiencing a correction, with the overall market showing a decline of 1.07% this week. The total market capitalization of listed REITs is approximately 224.98 billion yuan, with an average market cap of about 2.8 billion yuan per REIT [2][11] - The report highlights the performance of various REIT sectors, noting that energy infrastructure REITs performed relatively well, while data center and logistics warehouse REITs saw significant declines [2][11] - The report emphasizes the recent approval of new commercial real estate REITs, indicating a growing interest in the sector and potential for future growth [3][12] Summary by Sections REITs Index Performance - The CSI REITs total return index fell by 0.79% this week, closing at 1027.6 points. Year-to-date, the index has increased by 1.76% [1][9] - Comparatively, the Shanghai Composite Index and other major indices also experienced declines, with the Shanghai Composite Index down by 0.93% this week [10] C-REITs Secondary Market Performance - The secondary market for C-REITs showed an overall correction, with 18 REITs rising and 59 falling. The average weekly decline was 1.07% [2][11] - Specific sectors such as energy infrastructure showed positive performance, while logistics and data center sectors faced larger declines [2][11] REITs Valuation Performance - The internal rate of return (IRR) for listed REITs continues to show differentiation, with top performers including Ping An Guangzhou Guanghe REIT at 11% and E Fund Guangkai Industrial Park REIT at 9.8% [3][12] - The price-to-net asset value (P/NAV) ratio for various REITs ranges from 0.7 to 1.8, indicating varying levels of valuation across the sector [3][12] Investment Recommendations - The report suggests focusing on high-quality, undervalued projects under policy themes, particularly in high-energy cities and professional operations that can create management premiums [3] - It also recommends considering the resilience of assets and market prices when planning investments in sectors like affordable housing, which have already been recognized for their cyclical benefits [3]