China Approves New REIT Structure to Tap Distributed Solar Assets
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China has approved its first inter-institutional real estate investment trust (REIT) backed by commercial and industrial distributed solar assets, marking a significant step in financial innovation for the country’s massive but fragmented clean energy sector.
The 320 million yuan ($45.7 million) issuance, managed by PCG Power Technology Co. Ltd., highlights a growing effort to unlock capital markets for distributed renewable energy. The underlying assets for this REIT consist of approximately 130 megawatts of distributed solar projects located primarily in economically active regions such as the Yangtze River Delta, the Pearl River Delta and North China, according to PCG Power Co-President and Chief Financial Officer Yan Chichen.
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- China approved its first inter-institutional REIT backed by distributed solar assets, raising 320 million yuan ($45.7 million) managed by PCG Power.
- The REIT covers about 130 MW of rooftop solar projects, mainly in key economic regions, with stable cash flows from long-term corporate contracts.
- Challenges remain with valuation frameworks and market volatility, but the deal paves the way for securitizing China’s 300 GW distributed solar sector.
- PCG Power Technology Co. Ltd.
- PCG Power Technology Co. Ltd. managed China's first inter-institutional REIT backed by commercial and industrial distributed solar assets, valued at 320 million yuan ($45.7 million). Founded in June 2022, PCG invests in, builds, and operates commercial and industrial distributed clean-energy projects, having deployed over 1.5 gigawatts of solar capacity across 20+ Chinese provinces. Temasek is its largest shareholder, with a 27.07% stake.
- Western Securities Co. Ltd.
- Western Securities Co. Ltd. collected data on China's listed energy-infrastructure REITs. Their findings indicate that power-generation fluctuations negatively impacted sector-wide operating results in Q3 2025, especially for wind projects. As of November 30, they reported eight listed energy-infrastructure REITs in China.
- Temasek
- Temasek (淡马锡) became PCG Power's largest shareholder with a 27.07% stake earlier this year. PCG Power focuses on investing in, building, and operating commercial and industrial distributed clean-energy projects, having deployed over 1.5 gigawatts of distributed solar capacity across more than 20 Chinese provinces.
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