# Explosive Growth Year for Inter-institutional REITs! Securities Firms Increase Strategic Investment in Asset Management, Future is Collaborative Competition in Ecosystem

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Cailian Press, March 19 — Reporter Wang Yuling “This year will definitely be the first year of explosive growth in institutional REITs. Our company attaches great importance to this business, and last year we made some resource allocations.” A mid-sized Shanghai securities firm asset management executive told reporters.

Data from Wind, compiled by Cailian Press, shows that the institutional REITs business has accelerated since the end of last year, continuing its rapid growth this year. So far this year, 10 institutional REITs have been successfully issued, a significant increase from just 1 in the first quarter of last year.

Among the managers of institutional REITs, securities firms’ asset management units are the dominant players. Since 2026, Guojin Asset Management and Taibao Assets have each issued 3, while CITIC Securities, Guotai Haitong Asset Management, Dongwu Securities, and China Merchants Securities Asset Management have each issued 1.

Competition in this sector is fierce, with each asset management firm strategically prioritizing and actively investing resources to apply. Industry insiders believe that future competition will no longer be between single institutions but will involve the entire ecosystem of “investment banks + asset management + operations + capital” working collaboratively.

Development of institutional REITs accelerates, with 10 successful issues this year

Since late last year, the institutional REITs business has seen a clear acceleration.

Wind data shows that in 2025, the entire market issued 29 institutional REITs totaling 53.75 billion yuan. Thirteen of these were issued in December alone. In less than three months into 2026, 10 institutional REITs have been successfully issued, totaling 12.168 billion yuan. Compared to the same period last year, when only 1 was issued by March, the growth is evident.

In 2025, policy relaxation on asset scope, faster approval processes, and clear focus on pure equity assets, combined with the entry of commercial office, urban renewal, and other assets, brought a large supply. Meanwhile, in a low-interest-rate environment, insurance and wealth management institutions have strong demand for stable cash flow assets. The supply and demand sides resonated, aided by the demonstration effect of public REITs, driving rapid growth in institutional REITs.

Currently, the main managers of institutional REITs include securities firms’ asset management units, fund subsidiaries, and insurance asset managers. Securities firms’ asset management units, leveraging their investment banking experience and market-making capabilities, are the dominant managers.

From 2025 data, CITIC Securities issued 7, CCB Securities 4, Guotai Haitong and CICC each 3, Guojin Asset Management, Huatai Securities Asset Management, Xingzheng Asset Management, and PICC Asset Management each 2, and Ping An Securities, Taibao Assets, Taikang Asset Management, and Woori Asset Management each 1.

Since 2026, Guojin Asset Management and Taibao Assets have each issued 3, while CITIC Securities, Guotai Haitong, Dongwu Securities, and China Merchants Securities Asset Management each issued 1. Notably, the “Guojin Asset Management - Century Hongyuan Data Center Holding Real Estate Asset-Backed Special Plan” project reached an issuance amount of 4.654 billion yuan.

Three types of institutions have prominent allocation needs

Institutional REITs, often called “Hold-type Real Estate Asset-Backed Special Plans” (Hold-type REITs), refer to asset securitization products issued and traded on stock exchanges to qualified institutional investors, supported by cash flows from holding real estate assets such as shopping centers, office buildings, hotels, industrial parks, and energy facilities.

Compared to public REITs, they are more flexible in issuance thresholds, asset maturity requirements, and approval processes. They serve as a crucial link between non-standard financing and public REITs, enriching China’s multi-tiered REITs market.

Public REITs are standardized financial products publicly offered to retail investors and listed on stock exchanges. Institutional REITs are essentially asset-backed securities with core attributes of “private placement + equity,” mainly issued among qualified institutional investors in the institutional market. As a bridge between Pre-REITs and public REITs, institutional REITs can act as an “incubator” for assets not yet meeting public standards, which can transition to the public market once conditions are met.

Which institutions are buying institutional REITs? From the capital side, the most prominent demand comes from insurance funds, bank wealth management, and private equity funds. Insurance funds, with long-term liabilities and pursuit of stable long-term returns, are the core allocators; bank wealth management, after transitioning to net asset value, urgently needs high-dividend, low-volatility “fixed income+” assets; private funds prefer assets with growth potential, transfer or expansion prospects, and are more active in participation.

Their preferences are distinct:

Insurance funds favor long-term holdings, prioritizing stable cash flows and sustainable dividends from mature assets like rental housing and industrial parks, emphasizing safety and duration matching;

Bank wealth management focuses on medium-short durations, sensitive to yields, and tends to use “fixed income+” strategies to enhance portfolio returns through REITs’ dividend income;

Private equity funds adopt more flexible strategies, participating in primary subscriptions and secondary trading, favoring assets with growth potential, transfer prospects, or expansion plans, seeking higher overall returns.

These three types of capital complement each other, jointly supporting the rapid development of the institutional REITs market.

Future competition will be “concentration at the top, differentiated by features”

Insiders reveal that, in response to opportunities in institutional REITs, asset management departments or subsidiaries of various securities firms are highly focused and actively preparing applications.

A senior executive at Guojin Asset Management stated that they view institutional REITs as “a key strategic business to serve the real economy by revitalizing existing assets and building a multi-layered REITs ecosystem.” In terms of business layout, staffing increased in 2025 compared to 2024, recruiting industry and cross-industry professionals to enhance service capabilities. They also increased investment in technology and risk control, developing asset operation monitoring systems that utilize big data to track foot traffic, sales, energy consumption, and other indicators, aiming to provide more transparent disclosures and support asset valuation.

The executive believes that the future industry landscape may trend toward “concentration at the top and feature differentiation.” Large securities firms’ asset management units and leading fund subsidiaries, with strong branding, capital channels, and comprehensive services, may dominate large-scale, standardized projects. Smaller institutions seeking a foothold might need to develop deep industry knowledge and resource barriers in niche sectors like new energy, data centers, or cold chain logistics, pursuing a “small but refined” professional approach.

The future competition may shift from merely “channel fee rates” to “asset management capability.” Those who can improve NOI (net operating income) through refined operations will likely be more favored by capital and receive better market recognition. In summary, future competition will involve the entire “investment bank + asset management + operations + capital” ecosystem working collaboratively.

2026 policies will move toward “normalization, full categories, and full cycle”

What policy changes can we expect for institutional REITs in 2026?

A senior official involved in institutional REITs indicated that policies will evolve from “pilot exploration” to a more systematic framework of “normalization, full categories, and full cycles,” likely reflected in three aspects:

1. Asset scope expansion. During the 14th Five-Year Plan, policies are expected to no longer be limited to traditional infrastructure like transportation and municipal projects but will explicitly include commercial real estate (consumer infrastructure), new infrastructure (data centers, 5G base stations), new energy (wind, solar, storage), and affordable rental housing as part of regular issuance scope. The promotion of commercial real estate REITs marks China’s market toward broader asset management fields.

2. Optimization of approval mechanisms. With the normalization of issuance, project declaration, recommendation, and review processes are expected to become more transparent, standardized, and efficient. The regulatory authorities may establish a project reserve system, adopting a “declaration accepted, mature issuance” model, helping to shorten issuance cycles and reduce institutional transaction costs.

3. Policy coordination. Supporting policies related to finance, land, and state assets are expected to further align. For example, clearer guidelines on land use changes and tax neutrality during REITs issuance are anticipated to address practical operational concerns.

The official believes that the market scale in 2026 may continue to grow, with annual issuance possibly reaching high levels. Market focus may shift from “speed of issuance” to “asset quality,” with operational capability and cash flow stability becoming key factors in pricing.

Policy suggestions from a senior executive at a large Shanghai securities firm include three areas:

1. Further unify product standards, clarifying valuation methods, information disclosure, income distribution, and transfer mechanisms to reduce cognitive differences and transaction friction among institutions.

2. Improve secondary market trading mechanisms, optimize quoting, transfer, and settlement processes, and explore market maker systems to enhance pricing efficiency and trading convenience, encouraging institutions to invest and exit smoothly.

3. Strengthen information disclosure and valuation credibility, making underlying asset operation data, cash flows, and valuation basis more transparent, traceable, and comparable, helping institutions form stable expectations and increasing overall market acceptance.

Overall, standardization is fundamental, liquidity is key. Only with more unified rules, transparent pricing, and smoother trading can institutional REITs truly become long-term, standardized assets that attract sustained capital allocation.

(Reported by Wang Yuling, Cailian Press)