CHINA RES LAND (01109) has announced that on April 28, 2026, China Asset Management and CITIC Securities submitted application materials to the Shenzhen Stock Exchange and the China Securities Regulatory Commission for the registration and listing of a public fund. The assets underlying the REIT are two shopping malls located in Nantong City, Jiangsu Province and Linyi City, Shandong Province, China. The project in Nantong is wholly owned by China Resources Land (Nantong) Development Co., Ltd., while the project in Linyi is wholly owned by China Resources Land (Linyi) Co., Ltd. As of the date of this announcement, each project company is a wholly-owned subsidiary of CHINA RES LAND.

For the proposed spin-off, China Asset Management, as the public fund manager, will establish a public fund to act as a publicly listed real estate investment trust. The public fund is currently expected to raise approximately 5.405 billion yuan. At the time of the proposed listing, a wholly-owned subsidiary designated by CHINA RES LAND will act as a strategic investor, subscribing for approximately 20% to 30% of the total issued fund units.

In connection with the proposed spin-off and in accordance with applicable Chinese laws and regulations, an asset-backed specific plan will be established by an asset-backed plan manager. After the public fund is established, it will use the proceeds to subscribe for all the interests in the asset-backed specific plan. Subsequently, the asset-backed specific plan will use the subscription funds to acquire the entire equity interests in the project companies from the group.

Following the completion of the acquisition, each project company will be 100% owned by the REIT and will cease to be a subsidiary of CHINA RES LAND. After the proposed spin-off, the REIT will not become a subsidiary of the company and will not be consolidated into the company's financial statements.