Global investors are turning to China’s nascent C-Reit market as an exit route from the country’s slumping property sector, with Singapore’s CapitaLand leading the way as the first international sponsor of a Chinese real estate investment trust.

The strategy allows foreign firms to transfer stagnant property assets to yield-focused onshore investors. China’s Reit market has expanded rapidly since 2021, with 79 products listed and a market cap exceeding Rmb200bn, drawing strong domestic demand in a low-interest-rate environment.

While industry experts expect more global investors to adopt this model, Sam Radwan, co-founder of Enhance International, warned that Chinese C-Reits remain “fraught with problems”. He argued that insufficient transparency and limited market data prevent proper pricing, unlike mature markets such as the US, where comprehensive property performance, debt and rental data support accurate valuation.