Shanghai, Jan 25, 2026, 04:34 CST — The market has closed.
- China Construction Bank’s A shares closed lower on Friday, weighed down by a new filing linked to REITs.
- The lender announced it has ended the review of a public rental-housing REIT application, with no anticipated impact on operations.
- Upcoming catalysts: China’s official data releases and a U.S. Federal Reserve meeting, both poised to influence global risk appetite.
China Construction Bank Corporation’s Shanghai-listed Class A shares (601939.SS) will return to focus on Monday following the state lender’s announcement that the review of its public REITs application tied to rental housing has been terminated. The stock ended the day down 0.46% at 8.65 yuan.
That’s crucial today since public REITs — listed funds holding income-generating infrastructure — provide a cleaner path for companies to turn long-term assets into cash. For banks, this offers fee income and access to policy-backed rental housing, all without increasing their loan books.
The move comes as traders scramble to interpret policy signals before the Spring Festival, when cash demand often surges. On Friday, the People’s Bank of China conducted a 900 billion yuan one-year medium-term lending facility operation, resulting in a net injection of 700 billion yuan, according to state media and a financial outlet. The MLF is a key central bank tool that provides funds to banks. (People’s Daily)
In a REITs filing dated Jan. 23, the bank disclosed that the CCB Home Rental Housing Property Closed-end Infrastructure Securities Investment Fund was set for review in March 2024. However, the fund manager and the manager of a linked asset-backed “special scheme” later requested to withdraw their materials. The bank noted, “The termination of review of the application will not adversely affect the business operation or financial condition of the Bank.”
Friday’s action in CCB wasn’t isolated. While the Shanghai Composite nudged up 0.33%, major state banks mostly retreated: Industrial and Commercial Bank of China dropped 0.83%, Bank of China declined 0.57%, and Agricultural Bank of China fell 0.88%, per market data. (英为财情 Investing.com)
Traders are fixated on the gap between the benchmark and the banks. While a steady trickle of liquidity support can boost sentiment, it also fuels the belief that rates will remain low, putting pressure on banks’ lending spreads as time goes on.
The REIT withdrawal can be seen through two lenses. Some view it as simple housekeeping — what the bank called resource consolidation. Others interpret it as a sign of caution, given the difficulty in moving property-linked collateral, especially rental-housing assets, right now.
The property overhang isn’t just theoretical. Reuters reported this week that several rural banks are having a tough time unloading foreclosed properties, even with hefty discounts. Gavekal Dragonomics analyst Xiaoxi Zhang weighed in, saying: “We’re definitely in the largest non-performing-asset disposal cycle historically.” (Reuters)
Looking ahead, China’s calendar sets the immediate pace. The National Bureau of Statistics will drop its monthly “Industrial Economic Benefits” report on Tuesday, Jan. 27, followed by the Purchasing Managers’ Index on Saturday, Jan. 31, per the agency’s 2026 schedule. (National Bureau of Statistics of China)
Beyond China, the U.S. Federal Reserve is set to meet on Jan. 27–28, a key event that could move the dollar and shift global risk appetite—impacting foreign investment in China A shares. Investors in CCB will be focused on any updates regarding the REIT project, along with signs that other issuers might pull back from similar rental-housing REIT initiatives. (Federalreserve)
