China's REIT market could be world's largest says UBS

The first nine China REITs (C-REITs) comprising all infrastructure assets were issued in the first half of this year. According to UBS, China has US$60 trillion of infrastructure assets. “If 2% of these are securitised via REITs, using our proprietary interactive model we estimate a US$1.2 trillion C-REIT market in 2030 (5% of stock market), with 4% to 8% annualised unlevered returns and low volatility,” UBS estimates. It adds that the C-REIT market could be as large as US$3 trillion by 2030, comprising 11% of the stock market.