From January 22nd to January 26th, Huaxia Jinmao Shopping Center closed-end infrastructure securities investment fund (referred to as Huaxia Jinmao Shopping Center REIT) opened for subscription, with a subscription price of 2.67 yuan and a minimum subscription amount of 1000 yuan. Huaxia Fund Management Co., Ltd. is the fund manager, and China Bank is the fund custodian. The Huaxia Jinmao Shopping Center REIT invests in consumer-oriented infrastructure asset support special plans, and will prioritize investment in consumer-oriented infrastructure projects owned by or recommended by Shanghai Xingshuimao Business Management Co., Ltd. or its affiliates as the investment target for asset support special plans, and hold all asset support securities of the asset support special plan to obtain full ownership or operating rights of infrastructure projects. It is reported that the operating management organization of the infrastructure fund is Jinmao Commercial. As of the end of June 2023, Jinmao Commercial operates a total of 10 similar infrastructure projects, including Changsha Lanshuicheng, Nanjing Jinmao Lanshuicheng, Zhangjiagang Jinmao Lanshuicheng, Qingdao Jinmao Lanshuicheng, Tianjin Jinmao Hui, Shanghai JLIFE, Lijiang JLIFE, North Bund JLIFE, Qingdao Jinmao Bay, and Chongqing Longyueli. The infrastructure project that Huaxia Jinmao Shopping Center REIT plans to hold is the Changsha Lanshuicheng Shopping Center located at No. 1177 Huanhu Road, Yuelu District, Changsha City, Hunan Province. The Changsha Lanshuicheng project was completed in 2016 and consists of one building. Changsha Xiumao legally owns the real estate rights of the Changsha Lanshuicheng project, including ownership of the buildings and the land use rights as well as the rights to the common areas or other communal facilities associated with the assets. The Changsha Lanshuicheng project is a shopping center that mainly engages in the real estate leasing business of fixed shops within the project, leasing fixed commercial premises to tenants and collecting fixed/revenue-sharing rental fees and property management fees; in addition to the leasing business of fixed shops, there are also rental businesses for multiple economic points and advertising spaces within the property; the mall uses public areas to plan multiple economic points, sign consignment contracts with suppliers for merchandise sales joint operations, as well as miscellaneous businesses such as commercial management and property daily services. As of the end of 2020, 2021, 2022, and June 2023, the total assets of the infrastructure project were approximately 1.374 billion yuan, 1.288 billion yuan, 1.242 billion yuan, and 1.217 billion yuan respectively. The non-current assets of the project company mainly consist of Changsha Lanshuicheng, included in the investment property category. From the end of 2020 to the end of 2022 and the end of June 2023, investment property accounted for 92.48%, 95.52%, 95.87%, and 96.13% of total assets respectively. During the same period, there were significant changes in other current assets, primarily due to the continuous reduction of input VAT to be deducted. However, it is worth noting that the recruiting prospectus highlights the need to pay attention to the rental-related risks of consumer infrastructure projects. Most of the income of infrastructure projects comes from rental income and associated property management fees and promotional fees. Adverse changes in factors affecting such income may have a negative impact on the fund. Such impacts or risks include but are not limited to tenants failing to pay rent on time, tenant defaults, tenants renewing leases but reducing leased areas, and tenant non-renewal situations not meeting expectations. Additionally, the percentage of lease area expiring in 2024-2026 for the infrastructure project is 23.0%, 5.5%, and 9.8% respectively. If these expiring leases in the coming years are not renewed or replaced, there is a risk of increased vacancy rates for the infrastructure project, leading to a reduction in rental income, property management fees, and promotional fees for the infrastructure project.