Affected by factors such as a weak macro environment and liquidity pressures, China's public real estate investment trusts** (REITs) have far underperformed other major asset classes in the past year, and 90% of REITs products have fallen below the issue price.
Bloomberg
Bloomberg reported on Friday (December 15), citing data from China Securities Index Company, that the CSI REITs Index has returned negative 31% year-to-date, compared with negative 14% and 2% respectively for the stock** index and pure bond** index over the same period93%。
Bloomberg summary data also shows that among the 29 public REITs in China, only Jingbao REIT, Lingang REIT and Dongjiu REIT have maintained a small positive return since their listing, and the rest have been broken, among which ChinaAMC China Communications Construction Expressway REIT has been nearly half of the year since its issuance, the largest decline.
China's first batch of publicly offered REITs was launched in mid-2021, and has since been favored by investors due to favorable policies and product scarcity, and has gradually expanded from the infrastructure sector to new energy, consumer infrastructure and other fields. Against the backdrop of China's sluggish economic recovery and the sluggish real estate sector, REITs have been weakening in the secondary market.
According to the report, although China's public REITs have been launched for more than two years, they are still illiquid in the secondary market. According to data from the Shanghai and Shenzhen stock exchanges compiled by Bloomberg, the average daily total turnover of listed REITs in the two markets since December has been less than 400 million yuan (RMB, S$75 million).
Fu Lichun, founding partner of Yuntai Capital, analyzed: "The capital market, the real economy and the specific projects invested, a variety of factors determine the value of REITs, and from these factors, we are still more cautious about REITs. ”