Market Performance - The public REITs market has shown a weakening trend since August, with the CSI REITs Total Return Index declining nearly 4% as of August 20, and experiencing seven consecutive days of losses from August 11 to 19 [1] - As of August 20, the index ended its seven-day decline with a slight increase of 0.43%, but the overall decline for August reached 3.95% [1] - Among the 73 listed REITs, only two data center REITs and Huatai Baowan Logistics REIT saw price increases, while the remaining 70 REITs experienced declines, particularly in the affordable rental housing category, which averaged a drop of over 8% [1] Trading Activity - The trading activity in the public REITs market has decreased, with overall trading volume and value declining for three consecutive weeks. The recent week's trading value was 1.715 billion yuan, and the trading volume was 422 million units, representing declines of 47.49% and 38.75% respectively [1] Upcoming Challenges - The public REITs market is expected to face challenges due to a concentration of strategic placement shares set to be unlocked. Certain REITs, such as Hongtu Innovation Shenzhen Talent Housing REIT, CICC Xiamen Housing REIT, and Huaxia Beijing Affordable Housing REIT, will see the unlocking of original rights holders' strategic placement shares soon [2] - In 2024, a total of 29 public REITs are expected to be launched, with 16 of them listed after September, indicating a significant unlocking of market-oriented strategic placement shares [2] Strategic Investor Participation - Strategic investors have been the main participants in the placement of REITs, with each product having a placement share ratio of 67% or higher. A large-scale unlocking of public REITs is anticipated from September to December 2025, with a total of 3.83 billion shares set to be unlocked, accounting for 8.9% of the total issued shares in the market [3] - Specific categories, such as park infrastructure and transportation infrastructure, are expected to face significant selling pressure due to the unlocking of shares, with 1.44 billion shares and 872 million shares respectively set to be released [3]

Core Insights - The first batch of pilot projects for affordable rental housing REITs in China has made significant progress, with two products receiving approval from the China Securities Regulatory Commission (CSRC) for issuance [1][2] - The public REITs market is expanding steadily, with new applications being submitted, indicating a growing interest in affordable housing as a sustainable investment model [1][2] Group 1: Affordable Rental Housing REITs - The Hongtu Innovation Shenzhen Talent Housing REIT includes four affordable rental housing projects with a total construction area of 134,700 square meters, comprising 1,830 rental units valued at approximately 1.158 billion yuan [1] - The occupancy rate of these projects exceeds 98%, with 98% of leases being three-year terms and a renewal mechanism in place, targeting new citizens and young people at rental prices around 60% of the market rate [1] - The newly submitted Huaxia Beijing Affordable Housing Center REIT aims to utilize net recovery funds of 677 million yuan for the construction of 672 resettlement units and 1,869 public rental units, along with public service facilities [1] Group 2: Market Trends and Support - Huaxia Fund emphasizes that the pilot projects for affordable rental housing REITs serve as a good model for the market-oriented and professional transformation of affordable housing services [2] - The public REITs market is also seeing new projects beyond affordable housing, such as the Huaxia Hefei High-tech Innovation Industrial Park REIT, which has an expected issuance scale of 1.4 billion yuan [2] - The low-carbon infrastructure REITs are gaining attention, with the recent launch of the first clean energy infrastructure REIT, "Penghua Shenzhen Energy REIT," experiencing a cumulative increase of over 25% in its first four trading days [3]