C-REITs - Breaching the Last Frontier

Despite the challenges of juggling an economy under the weight of its zero-covid policies and stringent macroprudential measures, the Chinese government has remained steadfast in implementing its vision for the country’s REIT market. 2022 ticked off another milestone in the ongoing evolution, as China's first batch of rental property REITs went public in August, deepening financing channels for the country’s real estate sector.

Strong regulatory backing, quality asset base and robust underlying demand for dividend-rich stocks from investors in China’s US$12 trillion stock markets will remain supportive of the sector’s strong valuations. Progress is palpable, and we can expect more C-REIT listings in 2023. The inclusion of conventional commercial real estate – arguably the proverbial holy grail and the final frontier in the evolution of C-REITs – is nearing reality and the wave of listings that follow will undoubtedly be a massive investment opportunity.