my country's public offering of REITs mainly targets high-quality assets in key areas. The pilot policy emphasizes that public offering of REITs "encourages new infrastructure such as information networks" and "national strategic emerging industry clusters" should be piloted.

Moreover, the project should have a mature business model and market-oriented operation capabilities, generate sustained and stable income and cash flow, and have good investment returns, sustainable operating capabilities, and good growth potential.

According to the relevant requirements of the pilot, public REITs adopt the product structure of "publicly raised funds + asset-backed securities", which is a medium-risk-return equity investment.

According to international experience, public REITs can provide relatively stable dividend income, and their total long-term compound returns are also considerable.

In addition, publicly offered REITs have low correlation with other financial assets such as stocks and bonds, have good risk diversification effects, and have high allocation value.

In terms of investment risks, in addition to common fund investment risks, public REITs also face the following major risks.

1. Fund price fluctuation risk.

Most of the assets of public REITs are invested in infrastructure projects, which are equity-based and are generally affected by factors such as the economic environment and business management.

The market value and cash flow of infrastructure projects may change, which may cause fluctuations in the price of public REITs.

There is even the risk that infrastructure projects will encounter extreme events, such as earthquakes, typhoons, etc., causing huge losses and affecting fund prices.

2. Operation risks of infrastructure projects.

The concentration of public REITs is high, and the rate of return depends largely on the operation of infrastructure projects.

This infrastructure project may be affected by factors such as changes in the economic environment or poor management, causing the actual cash flow to be significantly lower than the budgeted cash flow, and there is a risk of poor return on funds.

Fluctuations in income such as rent and fees during the operation of infrastructure projects will also affect the stability of fund income distribution levels.

In addition, publicly raised REITs can directly or indirectly borrow from the outside, and there is also the risk that the operation of infrastructure projects will not meet expectations and the fund will be unable to repay the loan.

3. Liquidity risk.

Publicly offered REITs are closed operations and can only be traded in the secondary market. They cannot be subscribed or redeemed, and there is a risk of insufficient liquidity.

4. Risks of tax and other policy adjustments.

The operation of public REITs may involve multi-level tax burdens on fund holders, public funds, asset-backed securities, project companies, etc.

If national tax policies are adjusted, investment operations and fund returns may be affected.

5. Termination of listing risk.

During the operation of publicly offered REITs, the listing may be terminated due to the triggering of laws and regulations or the termination of listing stipulated by the exchange, resulting in investors being unable to trade in the secondary market.