China launches pilot commercial property REITs to cut developer debt and boost real estate stability.

China has launched a pilot program for commercial property REITs, enabling public investment in income-generating real estate to reduce developer debt, improve liquidity, and shift focus from rapid expansion to sustainable operations. The initiative, backed by regulators and stock exchanges, prioritizes quality and risk management, with proceeds barred from funding residential land purchases and returns tied to 10-year government bond yields. It complements China’s existing infrastructure REIT market, which had 78 listed funds worth 219.9 billion yuan by late 2025, and supports broader reforms to stabilize the real estate sector.