Primary market "hard to get a ticket" Secondary market price differentiation Publicly offered REITs supply and demand conflicts to be resolved

Recently, a certain infrastructure public offering REIT, which was oversubscribed by 235.8 times offline, was officially listed on the Shenzhen Stock Exchange. On its first day of trading, the stock opened below the issue price, closing at 5.499 yuan, a 10.16% decrease from the issue price, becoming the first REIT product to list and break the issue price in the year. Ro Yuanjiang, the managing partner of Deloitte's real estate industry in China, stated that the differentiation in the domestic REITs market is due to the valuation differentiation of underlying assets. For industrial parks with excessive supply or old commercial properties with negative rental income and dividend expectations, it will inevitably lead to a decline in the valuation of these REITs projects unless specific REITs projects have irreplaceable advantages, such as commercial properties in prime locations with high foot traffic.