Core Insights - The Chinese real estate market in 2024 is transitioning towards stock optimization and high-quality development, driven by policy guidance and market adjustments [1] - Jiangsu Province is establishing itself as a leader in the public REITs market, with significant achievements in various sectors such as smart cities, transportation, rental housing, and data centers [1] Group 1: Public REITs Development in Jiangsu - As of September 2025, Jiangsu has successfully launched 8 public REITs, raising a total of 24 billion yuan, with 12 REITs having 19 underlying assets located within the province [1] - The Dongwu Suyuan REIT, launched in June 2021, has attracted over 9 billion yuan in incremental funding for infrastructure development in various industries, promoting regional industrial structure upgrades [1] - The Huatai Jiangsu Expressway REIT, launched in November 2022, set multiple records and raised funds for the expansion of the Hu-Wu Expressway, totaling 36.05 billion yuan in investment [2] Group 2: Innovative Models and New Projects - The Suzhou Hengtai Rental Housing REIT, launched in May 2025, serves as a model for integrating talent housing projects with capital markets, achieving a rental rate of 93.33% [2] - The Nanfang Wanguo Data REIT, one of the first data center REITs, raised 2.4 billion yuan to support the construction and upgrade of data centers, showcasing a commitment to green finance and digital infrastructure [3] Group 3: Government Support and Policy Framework - Jiangsu Province has prioritized the development of infrastructure REITs in its 14th Five-Year Plan, implementing various supportive policies to encourage innovation and healthy growth in the sector [4] - Local governments in Jiangsu have introduced measures to support REITs, including specific action plans in cities like Nanjing and Suzhou [4] - The Jiangsu Securities Regulatory Bureau is actively promoting the use of public REITs by state-owned enterprises to enhance financing and investment efficiency [5] Group 4: Future Outlook and Collaboration - The Shanghai Stock Exchange is enhancing communication with local governments to address key issues in REIT project advancement and is collaborating with various departments to train and support project development [6] - There is a focus on identifying and reserving high-quality projects across various asset categories, including rental housing, industrial parks, and renewable energy [6]

Core Viewpoint - The Suzhou Hengtai Rental Housing REIT has officially listed, marking Jiangsu's first rental housing REIT and the eighth public REIT for affordable rental housing in the market, with a significant opening day increase of 29.99% [1][2]. Group 1: Fund Details - The fund raised a total of RMB 1.367 billion, with a total issuance of 500 million shares priced at RMB 2.734 per share, and has a duration of 48 years [2]. - On its first trading day, the fund's price surged to RMB 4.178 per share, reflecting a 52.82% increase from the base price, and it was temporarily suspended due to the price increase [2][4]. - The underlying asset of the REIT is the "Elite Apartment" community, which includes 28 public rental housing buildings and has a total area of 282,400 square meters [2][4]. Group 2: Rental Performance - The average rent for the residential units in the underlying asset is RMB 26.17 per square meter per month, while the average rent for supporting properties is RMB 37.12 per square meter per month [4]. - The occupancy rates from 2020 to 2023 were 91.10%, 90.11%, 90.97%, and 87.97%, with a noted decline attributed to internal renovations planned for 2024 [4]. - By the end of 2024, approximately 92.85% of the rental contracts for the residential portion will expire in 2025, indicating a concentration of lease expirations [4]. Group 3: Future Expansion Plans - The controlling entity, Hengtai Group, plans to invest approximately RMB 7 billion in new rental housing construction over the next five years and has already secured 12 quality reserve projects totaling 1,173,400 square meters [5]. - The company aims to align existing projects with public REIT issuance standards and improve operational efficiency while minimizing impacts on customer experience [5]. Group 4: Market Trends - Since the launch of the first rental housing REIT in 2022, a total of eight rental housing REITs have been listed, indicating a growing interest in this investment vehicle [6]. - The rental housing REIT sector has shown strong performance, with a 29.8% increase in the price index for rental housing REITs in Q1 2025, driven by supportive policies and stable distribution rates [6][7]. - The cumulative issuance scale of affordable rental housing REITs is expected to exceed RMB 25 billion, reflecting the increasing supply and demand in the rental housing market [7].