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China's first infrastructure REITs make stable debuts
CGTN
China's first batch of infrastructure real estate investment trusts (REITs) made a stable stock market debut on Monday. /CFP

China's first batch of infrastructure real estate investment trusts (REITs) made a stable stock market debut on Monday. /CFP

China's first batch of infrastructure real estate investment trusts (REITs) made a stable stock market debut on Monday.

All nine newly-listed trusts saw price increases on the first day, though their performances varied significantly with an average rise of 5.21 percent. 

The biggest gainer, Bosera CMSK Industrial Park Closed-end Infrastructure Securities Investment Fund, jumped 14.72 percent while Ping An Guangzhou Communications Investment Guangzhou-Heyuan Expressway Closed-end Infrastructure Securities Investment Fund only saw a 0.68 percent rise.

The nine infrastructure REITs are expected to channel investment into projects such as highways, industrial parks, storage and logistics, and sewage treatment. Five of them are listed on the Shanghai Stock Exchange and four on the Shenzhen Stock Exchange.

China approved the registration of the nine REITs in mid-May and kicked off sales on the last day of May

The price change limit is 30 percent on the first day of listing and 10 percent after that.

Infrastructure REITs can generate new capital to help fund the sector's expansion and provide companies with additional liquidity and deleveraging opportunities, according to a recent report from Moody's Investors Service.

The stable market performance shows the recognition of REITs by investors, said Zhang Zheng, deputy dean of Peking University Guanghua School of Management, in a comment piece seen by CGTN, adding the performance also showed a "rational focus."

(With input from Xinhua)

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