As of March 6th, Wind Information data shows that the total issuance size of 33 public REITs (real estate investment trusts) with announced issuance sizes has exceeded 100 billion yuan, reaching 107.426 billion yuan. Meanwhile, according to the reporter's analysis, among the 33 public REITs mentioned above, the amount of insurance funds allocated was about 14.79 billion yuan, accounting for 13.8% of the issuance scale. At present, the public REITs market in China is in a period of rapid expansion. On March 1st, four new REITs products were simultaneously reported, and the total number of REITs that have already been declared and are waiting for approval has reached 18. Industry insiders believe that the characteristics of REITs are highly compatible with insurance funds, and as the market continues to expand, the participation of insurance funds will further increase. Intensify the layout efforts for public REITs, and insurance institutions have shown high enthusiasm for participation. As of March 6th, among the issued REITs products, insurance funds as strategic investors and participating in offline placements accounted for nearly 14% of the total amount raised by REITs. Industry insiders believe that revitalizing existing assets, seizing the development opportunities of REITs business, and increasing the creation and allocation of high-quality infrastructure assets are important ways to enhance the long-term stable returns of insurance funds. From a specific institutional perspective, taking Dajia Asset as an example, it has been involved in investing in the first batch of public REITs projects since 2021, and continues to participate in the market through various methods such as strategic allocation, offline new investment, and secondary market investment. Currently, the total investment amount has reached nearly 200 million yuan. Everyone Asset Management stated that from the fourth quarter of 2023 to early January this year, the CSI REITs index quickly fluctuated and fell, reaching a historical low. It judged that public REITs had a valuation advantage and ushered in a good opportunity for layout. In January of this year, it issued multiple products that could only be invested in public REITs, achieving good investment returns. In fact, industry insiders continue to be optimistic about insurance companies participating in public REITs investments. Jia Zhi, Managing Director of the Asset Management Department of Hualin Securities, told Securities Daily reporters that insurance funds place more emphasis on the stability of overall returns in investment and tend to allocate diverse and rich assets. Most of the project assets of public REITs have relatively stable cash flow, making them the preferred investment targets for insurance funds. Although there may be price fluctuations in the secondary market, they also meet the long-term investment attributes of insurance funds. In the view of Yang Delong, Chief Economist of Qianhai Open Source Fund, the returns of public REITs are relatively stable, with volatility between general fixed income products and equity products, and a high degree of compatibility with the investment attributes of insurance funds. With the continuous expansion of the REITs market, the participation of insurance funds will continue to deepen. There is also corresponding policy support for insurance investment in REITs. The Notice on Optimizing the Regulatory Standards for Insurance Companies' Solvency, issued by the State Administration of Financial Supervision and Administration last year, adjusted the risk factor from 0.6 to 0.5 for investment in infrastructure securities investment funds (REITs) that have not been penetrated. Generally speaking, risk factors refer to the capital occupation of insurance companies for investment and business operations. Lowering the risk factor will improve the efficiency of capital utilization for insurance companies. Test pitch
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