The secondary market for public REITs stabilized last week after several consecutive weeks of adjustment. As of last Friday (July 31), the CSI REITs (closing) index settled at 713.57 points, up 0.42% week-on-week, while the CSI REITs total return index closed at 953.74 points, rising 0.48% from the previous week. Affordable housing, industrial parks, and warehousing and logistics recorded the strongest gains.

According to Wind data, among the 87 publicly listed REIT products, the number of those showing week-on-week increases jumped to 46. The top three gainers were the CICC Chongqing Liangjiang REIT, AVIC Beijing Changbao Rental Housing REIT, and HTC Innovation Yantian Port REIT, with weekly increases of 8.67%, 5.35%, and 4.86%, respectively. In terms of industry activity, commercial real estate REIT issuance continued its intensive push, with two new products being filed last week. Additionally, the AVIC CNNC New Energy REIT launched on July 28.

After multiple weeks of adjustment, the secondary market for public REITs finally found its footing last week. By Friday's close, the CSI REITs (closing) index stood at 713.57 points, up 0.42% week-on-week, and the CSI REITs total return index was at 953.74 points, a 0.48% increase. According to Guosen Securities, comparing the weekly performance of major indices, the order was: CSI convertible bonds > CSI REITs > CSI Aggregate Bond > CSI 300. Data from Kaiyuan Securities showed that last week's returns for affordable housing, environmental protection, highways, industrial parks, warehousing and logistics, energy, and consumer REITs were 2.19%, 0.37%, 0.41%, -0.15%, 0.42%, -0.68%, and -0.49%, respectively, with affordable housing, industrial parks, and warehousing and logistics leading the gains.

Looking at individual products, 46 of the 87 listed public REITs recorded week-on-week gains. The top three performers were the CICC Chongqing Liangjiang REIT, AVIC Beijing Changbao Rental Housing REIT, and HTC Innovation Yantian Port REIT, with weekly gains of 8.67%, 5.35%, and 4.86%, respectively. On the downside, 41 REITs saw weekly declines, with the worst performers being the ICBC Mengneng Clean Energy REIT, CICC Hubei Ketou Optical Valley Industrial Park REIT, and Guotai Junan Lingang Innovation Industrial Park REIT, falling 9.71%, 5.41%, and 4.53%, respectively.

In terms of trading scale and turnover rates, data from Everbright Securities indicated that the weekly trading volume for public REITs reached 21.2 billion yuan. New infrastructure REITs led other categories in average daily turnover during the period. Net capital outflows from major players were 26.64 million yuan for the week, reflecting a decline in market trading enthusiasm compared to the previous week. Regarding net inflows from major players, the top three categories were new infrastructure, warehousing and logistics, and municipal facilities. Among individual REITs, the top three for net capital inflows were the AVIC CNNC New Energy REIT, Southern Runze Technology Data Center REIT, and China AMC Anbo Warehousing REIT.

Last week featured several major developments in the public REITs industry. On Tuesday (July 28), the AVIC CNNC New Energy REIT was listed. During both the bookbuilding and public offering phases, the REIT attracted robust investor demand, with institutional investors subscribing at 361.36 times the offering and retail investors at approximately 424.36 times. Public materials show the underlying assets include the Beitashan Wind Power Project and the Fuchuan Xiehe Wind Power Project. The Beitashan project is located in Xinjiang, one of China's most wind-rich regions, while the Fuchuan Xiehe project is situated in Guangxi's wind-abundant area. The Beitashan project serves as a supporting power source for the Jiquan DC transmission line, with electricity primarily consumed in Anhui, Jiangsu, and Zhejiang, whereas the Fuchuan Xiehe project mainly supplies Guangxi. However, in secondary market performance, according to Shenwan Hongyuan Securities, the time gap between issuance (May 18) and listing exceeded two months, and the REIT fell 5.83% on its first trading day, making it the second initial public offering to break below its issue price in 2025.

Meanwhile, the REIT market saw accelerated supply and increased divergence last week, particularly with commercial real estate REITs advancing rapidly. Two new commercial real estate REITs were filed: the China AMC Joy City Commercial REIT and the Huaan CEC Puro Commercial REIT. According to an announcement from Joy City Holdings Group, it plans to use its subsidiary COFCO Property Investment Co., Ltd. as the original equity holder, with the Tianjin Joy City shopping center owned by its wholly-owned subsidiary Joy City (Tianjin) Co., Ltd. as the underlying asset for the commercial real estate REIT filing. The other product, the Huaan CEC Puro Commercial Real Estate REIT, has its original equity holder as Shanghai Pudong Software Park Co., Ltd., with underlying assets consisting of mature science and technology industrial park properties in the core area of Shanghai's Zhangjiang Science City, operated by the original equity holder and majority-owned by state-owned enterprise China Electronics Corporation. According to Kaiyuan Securities statistics, among REITs awaiting listing, there are 18 commercial real estate REITs, with diverse underlying asset types including commercial complexes, offices, retail properties, and hotels. The second batch of six commercial real estate REITs has received regulatory approval from the China Securities Regulatory Commission, covering assets from CapitaLand, Poly, Lujiazui, and Beijing State-owned Assets, with property types expanding to include hotels and mixed-use developments.