CICC releases the public offering REITs monthly report, as the inclusion of REITs in the Shanghai-Hong Kong Stock Connect policy, high-yield asset scarcity, and dividend trading stimulation continued the upward trend in the market this month. As of the end of the first quarter, public FOF funds held public offering REITs with a fair value of 43.65 million RMB, a 36.6% increase in holdings compared to the previous month. The company calculates that the weighted average annualized distribution rate of ownership REITs (actual in 2023 or expected in 2024 by managers) is 4.97%, a decrease of 11bps from the end of last month, narrowing the spread with the ten-year government bond yield by 12bps to 266bps, but the negative spread with the CSI Dividend Index dividend yield decreased from 31bps to 25bps, indicating that REITs with a high dividend perspective still have allocation value. CICC's main points are as follows: As of April 30, the total market value of the 36 public offering REITs listed in China was 106.1 billion RMB. The CSI REITs total return index rose by 3.82% this month, while the price index rose by 1.15%. The total return indices of US, Singapore, and Hong Kong REITs markets fell by 7.80%, 2.97%, and 3.09%, respectively. The market continued its upward trend this month, driven by the inclusion of REITs in the Shanghai-Hong Kong Stock Connect policy, high-yield asset scarcity, and dividend trading stimulation. This month, the total market capitalization-weighted total return of C-REITs was +3.97%, with ownership-type (+4.26%) outperforming operating-type (+3.72%), and the energy sector total return index leading with +7.75%. The market was active, with a monthly trading volume of 9.3 billion RMB, second only to March's 10.3 billion RMB; the average daily trading volume was 467 million RMB, with an average turnover rate of 0.93%, slightly down compared to the previous month. The company believes that the market this month was mainly driven by policy and funding factors, including 1) on April 19, the CSRC announced 5 measures for Hong Kong cooperation, one of which was to include REITs in the Shanghai-Hong Kong Stock Connect; 2) the continued attention and allocation sentiment of institutions towards REITs in the high-yield asset scarcity environment, with some new high-yield projects like China Power Construction Clean Energy REIT and Wumart Consumption REIT leading this month; 3) dividend trading driven by multiple projects this month. Public FOF continued to enter the market, with holdings increasing by 36.6% compared to the previous month. As an important incremental funding source for the REITs market, public FOF funds held public offering REITs with a fair value of 43.65 million RMB as of the end of the first quarter, a 36.6% increase in holdings compared to the previous month. The number of public FOF funds holding public offering REITs increased from 5 in the second half of 2023 to 9 (with Huaan Fund and China Merchants Fund accounting for nearly 90% of holdings), and the number of public FOF products involved increased from 12 to 29. In terms of the structure of holdings and investment strategy, they mainly focus on assets with stable historical performance or a significant discount to NAV. REITs allocation value can still be considered from a high dividend perspective. The company calculates that the weighted average annualized distribution rate of ownership REITs (actual in 2023 or expected in 2024 by managers) is 4.97%, a decrease of 11bps from the end of last month, narrowing the spread with the ten-year government bond yield by 12bps to 266bps, but the negative spread with the CSI Dividend Index dividend yield decreased from 31bps to 25bps, indicating that REITs with a high dividend perspective still have allocation value. Risk warning: Operational performance of projects lower than expected; significant increase in risk-free interest rates.