China's REIT market hits $33B as $13B flood raises doubts
Business
China's real estate investment trusts (REITs), which kicked off in 2021 to help the property sector, are now facing a big challenge: too many new offerings and not enough buyers.
The market ballooned to $33 billion, but over $13 billion in fresh REITs is flooding the scene, making people question if this system can really keep things stable.
Investor confidence falls for China REITs
Investor excitement has faded fast: returns have slipped, and only half of the new REIT listings are trading above their starting price.
About 30 REITs are hoping to raise $13.5 billion right now, but with values dropping 10.4% in just six months, confidence is low.
Beijing's plan to use REITs for funding big projects isn't working out as smoothly as hoped.