
Real estate trusts could ease China debt pressure

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China is exploring real estate investment trusts (REITs) to alleviate debt pressures on developers and local governments. Following the introduction of REITs in 2021, new draft rules aim to allow more commercial properties to enter the market, potentially attracting investors with higher cash distribution rates compared to government bonds. Analysts predict the REIT market could reach one trillion yuan by 2035. Despite fragile confidence in real estate, recent price rebounds in major cities suggest a potential stabilization as authorities work to support the sector's recovery.

