China’s real estate investment trust (REIT) market is expanding to cover commercial properties on a broader scale. Last December, the China Securities Regulatory Commission launched a pilot program for commercial REITs, covering offices, hotels, retail stores, and mixed-use properties.
According to a report by the Asia Pacific Real Assets Association, the program aims to transform China’s real estate sector from a debt-dependent model to one focused on long-term operations and professional asset management.
David Chen, CEO of FOG Capital & Asset Management, emphasized that these funds will revitalize the real estate sector and provide property owners with expanded exit channels through securitization.
The market has shown a rapid positive response, with the Shanghai Stock Exchange accepting applications for eight funds within one month of the project’s launch.
The funds are expected to raise approximately 31.5 billion Chinese yuan, including assets such as hotels, office buildings, and large commercial complexes. Kong Lingyi, an official at SCGC Realty Capital, noted that the move reflects a shift in investor behavior toward prioritizing cash flow quality and long-term investment strategies.
China initially launched REITs focused on infrastructure in June 2021, targeting assets such as roads and industrial parks, and has now expanded the scope to include the commercial sector. In 2023, commercial assets and consumer-related infrastructure were introduced, while hotels and office properties were added to the eligible asset list in November 2025.
