(Original Title: Improving Market Liquidity, Publicly Offered REITs Intensively Increase Market Makers)
Recently, the volatility of the public offering REITs market has increased. In the past half month, seven public offering REITs have fallen by more than 3%. Among them, CICC Anhui Traffic Control REIT broke its position on the first day of listing.
In this context, public offering REITs issued intensive announcements, announcing the addition of market maker institutions to improve product liquidity.
Public offering REITs suddenly encountered shocks
According to the statistics of Choice, as of November 23, among the 22 public offering REITs that have been listed in the past half month, only Huaxia Yuexiu Expressway REIT has achieved positive returns. CICC Anhui Traffic Control REIT has neither risen nor fallen, and 20 public offerings REITs fell to varying degrees.
Seven publicly offered REITs fell by more than 3% in the past two weeks. Among them, Hongtu Shenzhen Anju REIT fell the most, down 5.14%; Huaxia Beijing Affordable Housing REIT and AVIC Shougang Green Energy REIT dropped 4.12% and 4.27% respectively.
In the meantime, the first day of the launch of new products has broken. On November 22, CICC Anhui Traffic Control REIT fell by more than 7.5% on its first day of listing. Huatai Jiangsu Traffic Control REIT was listed on November 15, and it also broke for a time during the session.
A fund manager said that the recent bond market has undergone turmoil and adjustments, and the risk-free interest rate has fluctuated significantly in the short term, and the secondary market prices of publicly offered REITs with a high degree of institutional investor participation are under pressure.
Collectively increase market makers
In the context of the continuous adjustment of the public REITs market, many fund companies have successively announced the addition of market makers for their products.
On November 23, CICC announced that CICC ProLogis REIT added Galaxy Securities and CITIC Securities to provide market-making services in SSE Fund Connect, and CICC Xiamen Anju REIT added CITIC Securities to provide market-making services in SSE Fund Connect. .
There are also public offering REITs such as Huatai Jiangsu Traffic Control REIT, CICC Xiamen Anju REIT, and Huaxia Hefei High-tech REIT, which have successively announced market makers in recent days.
Specifically, the intensively increased market-making institutions this time include CICC, CITIC Securities, Huatai Securities, and GF Securities, which provide market-making services for public REITs.
Wang Qiaochu, fund manager of Bosera Fund, believes that market makers make markets for publicly offered REITs, reduce investor transaction costs through continuous bilateral quotations, and eliminate serious price deviations to a certain extent, thereby maintaining and stabilizing market prices.
Based on multiple factors, the premium level of publicly offered REITs in the secondary market has gradually decreased. According to Choice statistics, as of November 23, the average premium rate of 22 publicly offered REITs dropped to 21.44%. 18 publicly offered REITs, including Huaan Zhangjiang Everbright Park REIT and AVIC Shougang Green Energy REIT, saw premiums to varying degrees, while four publicly offered REITs, including Huatai Jiangsu Traffic Control REIT and Ping An Guanghe Expressway REIT, showed discounts.
Investment must be more rational
According to industry insiders, since the listing of the first batch of projects, the overall liquidity of the public offering REITs market is relatively good, and the correlation with the bond market and stock market is low.
Bosera Fund believes that domestic investors’ understanding of REITs products is not yet fully mature. Looking forward to the future, as investors and issuers become more familiar and rational with the REITs market, a certain number of projects launched by various basic asset classes will be launched, the issued projects will continue to expand, and the share of circulation will continue to increase. The allocation value of the public offering REITs market will become more highlight.
CICC also stated that REITs are suitable for long-term allocation. Compared with the secondary market price, the value of the product itself is more important. Investors must invest rationally and fully understand product risks. Before participating in REITs investment, investors should fully understand their own risk tolerance, deeply understand the investment philosophy of REITs, and strengthen research on the underlying assets and operations.
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