“As REITs improve pricing transparency and exit options, investors are placing greater emphasis on resilient income, operational quality and long-term asset management.” ---- James Macdonald， RESEARCH



Capital Recycling Reshapes Investment

• China's en-bloc investment market recorded RMB263.0 billion of transactions over the past 12 months (to 15 June 2026), up 17.6% YoY, marking the first annual increase in investment activity for several years.

• Office investment totalled RMB70.3 billion, down 13.4% YoY, although the pace of decline continued to moderate. The listing of China's first office REIT improved pricing transparency and established a new securitised exit route for institutional office assets.

• Retail investment increased 34.9% YoY to RMB76.8 billion, supported by several large portfolio transactions, particularly in lower-tier cities, as developers continued to recycle capital through asset disposals.

• Industrial and logistics investment reached RMB66.0 billion, up 35.8% YoY, with investor demand supported by improving market fundamentals, modern logistics facilities and continued confidence in China's manufacturing and supply chain sectors.

• Investment activity in lower-tier cities increased 48% YoY, reflecting growing investor interest in selected regional markets where pricing has adjusted and long-term growth prospects remain attractive.

• A total of 11 REITs were approved during the quarter, including 10 commercial REITs. The continued expansion of the REIT market and the incorporation of regular REIT issuance into the 15th Five-Year Plan reinforce its role as a long-term financing and capital recycling mechanism for China's real estate market.