China Public REITs Valuations Return to Historical Lows, Brokers See Rising Allocation Appeal

China’s publicly offered REITs have shown early positive signals in the secondary market after a prior pullback, with multiple brokerage institutions saying valuations have entered a historically low range. According to Jin10, these institutions said that as index funds are launched and expectations rise for insurance funds to enter the market, the supply-demand structure may improve, lifting the long-term allocation value of public REITs. Data showed that as of June 30, the spread between the distribution yield of property-type REITs and the 10-year government bond yield had reached levels seen at two previous market bottoms in early 2024 and early 2025. Based on historical performance, when this spread moves into a high range, the REITs market has typically seen valuation repairs of varying degrees. The institutions said this suggests that after the earlier adjustment, the REITs market has been gradually absorbing short-term negative factors, with the valuation safety cushion continuing to strengthen.