Singapore-based CapitaLand Investment Ltd. has received regulatory approval from China to list two of its shopping malls in the country’s public real estate investment trust (REIT) market, making it the first foreign investor to tap this platform. The REIT, set to include CapitaMall SKY in Guangzhou and CapitaMall Yuhuating in Changsha, received the green light from the China Securities Regulatory Commission (CSRC) to register for listing on the Shanghai Stock Exchange. CapitaLand expects to raise approximately 2.1 billion yuan (around $294 million) from the listing.
China launched its REIT market in 2021 as a channel to attract capital for large-scale infrastructure and real estate projects while offering investors steady dividend income. Initially focused on infrastructure projects, the REIT program expanded in 2023 to include shopping malls and other commercial real estate assets. The sector has delivered strong returns in 2025, ranking among the top performers in Asia, even as valuations for developers’ bonds and stocks fell sharply.
This listing represents a strategic move for CapitaLand, which has been navigating a challenging period due to exposure to China’s real estate slowdown. By packaging two operational malls into a publicly traded REIT, CapitaLand aims to reassure shareholders and create a liquidity option for its Chinese assets. CapitaMall SKY is jointly owned by CapitaLand Investment and its private development arm, while CapitaMall Yuhuating is backed by CapitaLand’s China-focused Singapore-listed REIT. Together with CapitaLand Development and CapitaLand China Trust, the firm plans to hold at least 20% of the shares in the new REIT.
The C-REIT listing option has been seen as a practical solution for divestment, especially in the context of tier-two cities where private real estate transactions are limited. According to Gerry Chan, CEO of CapitaLand China Trust’s manager, the public REIT route offered better pricing and a transparent structure for investors compared to private deals.
The move also signals an increasing openness of China’s regulatory framework to foreign investment in real estate financial instruments. Experts from the China REITs Institute note that CapitaLand’s approval could set a precedent for other foreign asset managers seeking entry into China’s public REIT market. Analysts from Bloomberg Intelligence have highlighted the sector’s resilience, noting that REITs in China provided more stable returns than developer equities and corporate bonds in the first half of 2025.
CapitaLand Investment is the listed investment management arm of CapitaLand Group Pte, which is majority-owned by Singapore state investor Temasek Holdings. The firm’s portfolio in China spans multiple commercial, retail, and mixed-use properties, and this REIT listing will allow the company to monetise select assets without relinquishing operational control entirely. Investors in the C-REIT can expect a steady stream of rental income from the malls, as well as potential appreciation in the REIT’s market value over time.
China’s public REIT framework provides a structured platform for institutional and retail investors to participate in income-generating real estate while enhancing transparency in asset management. CapitaLand’s listing underscores the growing role of REITs in China as a financial tool for foreign investors to access commercial property markets. With strong regulatory oversight and a standardized framework, the market is expected to attract additional foreign and domestic players in the coming years.
The launch of the first foreign-led C-REIT also highlights the broader trend of cross-border investment in Asia’s real estate sector. Investors are increasingly looking for diversified income sources in regions where bond yields remain low. By entering the public REIT market, CapitaLand not only strengthens its liquidity position but also establishes a benchmark for international participation in China’s growing commercial property sector.
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