China's First Rental Housing REIT Follow-on Offering Project Listed on SSE

On 25 June 2025, the ChinaAMC Beijing Affordable Rental Housing REIT Follow-on Offering project was listed on SSE, which is the first rental housing REIT project in China to conduct successful follow-on offering. It marks the development of the dual-drive pattern of "initial public offering and follow-on offering" in the publicly offered REITs market, showing faster progress in the regular issuance of REITs.

Since its listing in August 2022, ChinaAMC Beijing Affordable Rental Housing REIT has distributed around 128 million yuan in dividends. The total funds raised in this follow-on offering reached around 946 million yuan. The assets to be purchased include four rental housing projects under mature operation, located in Haidian District, Fangshan District, Tongzhou District, and Daxing District of Beijing. The recovered funds are intended to be used for the development of affordable housing projects such as public rental housing. The annualized cash flow distribution rate of the follow-on offering project is predicted to be 4.11% in 2025, higher than the distribution rate calculated by market value for the initial public offering project. This will help to diversify the asset portfolio, enhance investor returns, and raise equity capital for the original rights holders to invest in Beijing's affordable housing market.

Follow-on offerings are a crucial feature of publicly offered REITs, serving as an effective measure to promote regular issuance of REITs and sustainable market development. Promoting follow-on offering of REITs will help better leverage the refinancing function of the REITs market, promote the revitalization of existing assets, reasonably expand effective investment, and serve the high-quality development of the real economy. Since the successful follow-on offerings for the first batch of four publicly offered REITs in June 2023, SSE has actively promoted the growth of the listed REITs through follow-on offering. Since 2024, six REITs listed on the SSE have released announcements on follow-on offering, with two approved and four under acceptance review.

As of 25 June 2025, the SSE has seen initial public offerings of 44 REITs and follow-on offerings of three REITs, with a total issuance scale of 122.6 billion yuan, covering major asset types such as toll roads, industrial parks, warehousing and logistics, rental housing, energy, consumption, and municipal engineering. For the next step, under the overall guidance of the China Securities Regulatory Commission, the SSE will accelerate the regular issuance of REITs, enhance platform functionality, and improve the follow-on offering mechanism. The SSE will guide the listed REITs to enhance their standardized operations, urge all stakeholders to perform their duties, and facilitate the improvement of project operation quality and efficiency as well as investor returns. The SSE will continuously refine the market ecosystem, help to foster a high-quality REITs market, and better serve national strategies and overall economic and social development.