Dr. Wei Zhen, the Global Head of MSCI China Research, recently stated that compared to global counterparts, REITs in China are still in the early stages, but they have great potential in the huge Chinese economy and market. With the right policies and market conditions, infrastructure REITs in China have the potential to become an important part of the global REITs asset class. Looking ahead, Chinese infrastructure REITs not only align with national development plans, but also represent a new investment category for domestic and foreign investors, making the Chinese REITs market an important hub in this emerging field. REITs play an important role in asset allocation Dr. Wei Zhen pointed out that real estate has always played an important role in asset allocation. Globally, investors diversify risk and achieve a diversified investment portfolio through public and private real estate projects, as well as Real Estate Investment Trusts (REITs). REITs provide an indirect way for investors to participate in real estate, allowing them to enjoy rental and property value returns without directly owning or managing assets. The appeal of REITs to global investors lies in their ability to provide relatively stable returns over the long term and help diversify portfolio risks. Differences and potential of Chinese infrastructure REITs Dr. Wei Zhen mentioned that Chinese infrastructure REITs have many similarities to global REITs, such as pooling resources to invest in real estate or infrastructure projects that generate cash flow. However, there are key differences in product design, legal structure, market structure, and investability. China's REITs structure currently adopts a multi-layer structure of "public funds + ABS," which differs from the internationally accepted trust or company REITs structure. Additionally, China has not legislated tax incentives for REITs, creating a gap compared to developed countries in terms of tax benefits. Compared to global counterparts, REITs in China are still in the early stages, but they have great potential in the huge Chinese economy and market. With the right policies and market conditions, infrastructure REITs in China have the potential to become an important part of the global REITs asset class. MSCI's involvement in the real estate industry MSCI's research on the real estate industry began in the 1990s through a collaboration with S&P to develop the Global Industry Classification Standard (GICS), which serves as an important reference for global investors in cross-industry allocations. In 2006, we introduced real estate as a separate industry, recognizing its unique characteristics and importance in the global economy. Dr. Wei Zhen stated that looking ahead, Chinese infrastructure REITs not only align with national development plans, but also represent a new investment category for domestic and foreign investors, making the Chinese REITs market an important hub in this emerging field. MSCI is pleased to continue being a part of this journey, providing real estate and REITs-related investment tools for both Chinese and global investors.