Group 1: Definition and Purpose of Quantitative Easing - Quantitative Easing (QE) is a non-conventional monetary policy where central banks purchase long-term bonds to increase the money supply and inject liquidity into the market, aiming to stimulate consumption and investment by influencing inflation expectations [3][4] - The primary goal of QE is to break the "liquidity trap" when nominal interest rates are near zero, making it difficult for traditional monetary policy to be effective [4] Group 2: Reasons for Implementing Quantitative Easing - Traditional monetary policy tools become ineffective during severe economic downturns, such as the 2008 financial crisis and the 2020 COVID-19 pandemic, necessitating the use of QE to directly inject liquidity into the market [4] - QE helps combat deflation by injecting liquidity, raising asset prices, and stimulating demand, thereby reversing deflationary expectations [5] - During financial crises, QE provides liquidity to prevent market panic and stabilize financial institutions, avoiding widespread bankruptcies [6] Group 3: Operation of Quantitative Easing - Central banks typically target low-risk, highly liquid assets for purchase, such as government bonds and mortgage-backed securities, with the possibility of including corporate bonds and ETFs in special circumstances [7] - The implementation involves open market operations where central banks buy assets from primary dealers, injecting funds back into the banking system [8] - The funds received by dealers from asset sales flow back into the banking system, increasing excess reserves and ultimately facilitating lending and investment in the real economy [9] Group 4: Impacts of Quantitative Easing - QE stimulates economic recovery by lowering financing costs for businesses and individuals, leading to increased investment and consumption, which can boost GDP and reduce unemployment [11] - It stabilizes the financial system by injecting liquidity, alleviating pressure on financial institutions during crises [11] - The influx of capital into financial markets drives up asset prices, potentially creating a positive feedback loop that further stimulates consumption and investment [11] Group 5: Notable Cases of Quantitative Easing - The Federal Reserve implemented multiple rounds of QE post-2008 financial crisis, expanding its balance sheet from $4 trillion to a peak of $8.9 trillion after the COVID-19 pandemic [10] - Japan's central bank adopted QE in the 1990s following economic stagnation, significantly increasing its balance sheet, but with limited success in economic recovery [10]

Investment Rating - The report maintains an "Overweight" rating for the REITs industry [1] Core Insights - The REITs market in China has evolved significantly since the pilot program began in 2021, focusing on infrastructure and public goods, with a dual structure of public funds and ABS [2][13] - The low interest rate environment enhances the attractiveness of REITs as high-yield assets, with strong policy support expected to drive market growth [3][6] - The asset selection logic is shifting from policy-driven to cash flow quality-oriented, indicating a trend towards higher asset quality [32] Summary by Sections 1. REITs Basic Information: Product Structure and Differences - REITs are financial instruments that convert stable cash flows from real estate into tradable securities, providing liquidity and investment opportunities for long-term funds [12] - China's REITs focus on policy goals and liquidity, with a dual structure emphasizing compliance and transparency [13][16] - The types of assets included in the REITs pilot program have expanded to 13 categories, including industrial parks and affordable rental housing [13] 2. REITs Development Review: Policy Foundation and Market Expansion - The market has seen fluctuations in issuance scale, with 2023 experiencing a decline due to macroeconomic pressures, but a rebound is expected in 2024 [36] - The issuance mechanism involves a high proportion of strategic placements, averaging 72.2%, which enhances project stability but limits secondary market liquidity [38] 3. Future Outlook: Finding Allocation Value in a Low-Interest Era - The diversification of asset types is accelerating, with new categories like data centers and wind power expected to emerge by 2025 [6][3] - Long-term capital inflows are anticipated to increase, driven by the rising proportion of insurance and pension fund holdings [6][3] - The market is expected to continue expanding, with performance across sectors aligning more closely with the underlying asset logic [6][3]