On March 12th, recently, the popularity of public REITs has been high. As of March 11th, 63 public REITs have been listed in the entire market, covering asset categories such as warehousing and logistics, transportation infrastructure, energy infrastructure, and park infrastructure, with a total issuance scale of approximately 168.4 billion yuan. According to research conducted by reporters, in the context of asset scarcity, public REITs attract many long-term and high dividend preferred funds, and insurance funds are one of the important allocation forces. Multiple insurance institutions participate in public REITs investment through strategic allocation, offline investment, and secondary market timing trading. Several insurance institution insiders told reporters that the underlying assets of public REITs have a low correlation with major asset classes such as stocks and bonds, which can diversify risks and optimize investment portfolios. At the same time, public REITs have the characteristics of low risk and stable returns, which are in line with the investment needs of insurance funds. However, in the eyes of industry insiders, due to the constraints of solvency, there are still restrictions on the investment of public REITs by insurance funds. It is recommended to further optimize relevant policies, appropriately reduce investment risk factors, and enhance the willingness of insurance funds to invest. (China Securities Journal)
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