China’s Sizzling REIT Project Offers a Haven in a Choppy Market

(Bloomberg) — China’s nascent real estate investment trust project looks well placed to continue its market-beating run as a renewed infrastructure push adds to its appeal.

An equal-weighted basket of 11 REITs backed by assets ranging from industrial parks to highways has surged 88% since its inception last year, and is up 16% since Jan 1.

China is experimenting with REITs to tap the world’s second-largest equity market to finance projects that local governments would otherwise have to fund. A recent pledge to accelerate urban development adds to corporate tax breaks and a call to fast-track infrastructure REIT applications.