With the official launch of the pilot program for commercial real estate REITs, China's public REITs market is undergoing a key expansion from the infrastructure sector to the commercial real estate sector. A multi-level REITs market ecosystem with richer underlying assets and more dynamic market formats is accelerating its construction. Industry insiders point out that the implementation of the pilot program for commercial real estate REITs will support the construction of a new model for real estate development and further enhance the quality and efficiency of multi-level capital market services for the real economy. Recently, the China Securities Regulatory Commission officially issued the "Notice on Promoting the High Quality Development of the Real Estate Investment Trust (REIT) Market" (hereinafter referred to as the "Notice") and the "Announcement of the China Securities Regulatory Commission on Launching the Pilot of Commercial Real Estate Investment Trust Funds" (hereinafter referred to as the "Announcement"), and the Shanghai and Shenzhen Stock Exchanges, China Securities Depository and Clearing, and other relevant documents were simultaneously issued. It is reported that relevant departments will adhere to the principles of "standardization first, pilot breakthroughs, steady promotion, and strengthened supervision", adhere to the direction of marketization and rule of law, focus on key areas and high-quality projects, and promote pilot work in stages. Commercial real estate REITs refer to closed-end publicly offered securities investment funds that obtain stable cash flow by holding commercial real estate and distribute returns to fund shareholders. From the development experience of mature global markets, commercial real estate such as commercial complexes, commercial retail, commercial office buildings, and hotels are important underlying assets for REITs. The stock of commercial real estate in China is huge, and there is an inherent demand to revitalize and expand equity financing channels through REITs. The Notice clearly states that promoting the development of the commercial real estate REITs market is an important measure for the capital market to implement the decisions and deployments of the Central Committee of the Communist Party of China and the State Council on "revitalizing the stock, optimizing the increment" and "increasing the proportion of direct financing". It is an effective means to support the construction of a new model for real estate development through market-oriented mechanisms, and is of great significance for promoting the healthy development of the REITs market, promoting the function of REITs, and continuously improving the inclusiveness and adaptability of the capital market system. To ensure the smooth start of the pilot program for commercial real estate REITs, the Announcement clarifies the product definition, basic requirements for fund registration and operation management, responsibilities of all parties, and regulatory framework for commercial real estate REITs. In terms of supporting business rules, the revised new rules include both commercial real estate REITs and infrastructure REITs within the scope of the rules. In terms of admission standards, the basic requirements for compliance, finance, asset evaluation, and fund operation of the project are clearly defined, and targeted arrangements are made for commercial real estate REITs. In terms of optimizing the audit mechanism and strengthening issuance supervision, the adjusted business rules clarify the procedures for each stage of the audit, shorten the audit time limit, and further improve audit efficiency. Optimize the pricing arrangement for the sale of supporting rules, improve the fundraising mechanism, strengthen information disclosure requirements, and clarify the disclosure requirements for the operation of commercial real estate related formats. Yan Yuejin, Vice President of Shanghai E-house Real Estate Research Institute, stated that the current real estate industry is shifting towards a refined asset operation and management model of "investment financing management withdrawal". The launch of commercial real estate REITs plays a positive role in preventing and resolving real estate risks, and will promote the transformation and upgrading of the real estate industry. Professor Zhang Zheng from Peking University Guanghua School of Management stated that commercial real estate REITs will enhance the inclusiveness and adaptability of the capital market, providing more diversified financing channels for China's real estate industry and real economy. At the same time, commercial real estate REITs will also serve national strategies such as affordable housing construction, urban renewal, and consumption boosting, providing financial support for policy implementation. According to the Announcement and its supporting rules, current market participants can directly apply to the China Securities Regulatory Commission and the stock exchange. In the initial stage of the pilot program, we do not seek too much or too fast, and insist on strictly controlling the quality, compliance, and risk of issuance and listing. The reporter learned that commercial real estate REITs will focus on supporting high-quality projects that comply with national policy guidance, have significant social benefits, stable operating performance, and industry representativeness. Priority will be given to mature commercial real estate in core urban clusters and economically active areas, and commercial real estate projects held by central enterprises, local key state-owned enterprises, listed companies, as well as high-quality private and foreign enterprises will be supported. Commercial complexes, commercial retail, commercial office buildings, hotels and other formats will be promoted as a priority. The official launch of the pilot program for commercial real estate REITs also marks a crucial step towards diversifying the asset types in China's public REITs market, and the construction of a REITs market system with richer underlying assets is accelerating. China CITIC Securities stated that the pilot implementation of commercial real estate REITs marks the full range of underlying assets in China's public REITs. From the perspective of development history, in April 2020, the China Securities Regulatory Commission and the National Development and Reform Commission jointly issued a notice on promoting the pilot work of Real Estate Investment Trusts (REITs) in the infrastructure sector. On June 21, 2021, the first batch of nine public REITs projects in China were officially listed on the Shanghai and Shenzhen Stock Exchanges. According to statistical data, as of December 27, 2025, 78 REITs products have been listed on the Shanghai and Shenzhen stock exchanges, with a financing amount of 209.9 billion yuan and a total market value of 219.9 billion yuan. China's public REITs market has grown from scratch and is currently developing and expanding. At the same time, the market is running smoothly and orderly. Since 2024, the CSI REITs total return index has risen by 19%, and REITs have gradually become an important asset allocation product. The China Securities Regulatory Commission stated that it will accelerate the construction of the REITs market system and promote market expansion and coverage. Continuously increasing the supply of high-quality REITs, promoting the continuous enrichment and orderly growth of market formats. Improve the arrangement of REITs fundraising system and market-oriented pricing mechanism, actively explore diversified and efficient fundraising implementation paths. Supporting listed REITs with stable operations, effective governance, and high-quality information disclosure to become better and stronger through asset purchases, fundraising, mergers, and other means, orderly increasing the asset size and risk resistance of individual REITs, and continuously enhancing their endogenous driving force for long-term value creation. Treat all types of ownership enterprises equally, support private enterprises to revitalize their existing assets through REITs, and expand equity financing channels. (New Society)