1、 Watchlist the stock on Insights Direct to receive prompt updates ed-JS/sa-CS/AH Scout for regional opportunities Despite near-term headwinds,the significant divergence in rental and occupancy outlooks across key economic regions is noteworthy and should not be ignored Performance polarisation is he

2、re to stay,and our ranking for exposure is YRD GBA JJJ as supply and demand tailwinds emerge in the medium term Investors fear of a potential multi-year downcycle may be overdone;we maintain a positive medium-term outlook on the sector GLP C-REITs strong presence in YRD and GBA would set it up well

3、to report more resilient quarterly data and address investor concerns;MLTs YRD-centric portfolio,though volatile near-term,sits well for better recovery ahead Divergence Divergence is is here to here to staystay.High supply influx and moderating leasing appetite have created a double whammy for Chin

4、as once-favoured warehouse sector.Investor concerns are mounting as both rents and occupancy rates continue to fall(-2%and-1ppt y/y in 1H24).However,many are overlooking the significant divergence in performance and outlook across key economic regions.Jing-Jin-Ji(JJJ)remains in a supply-demand imbal

5、ance with rents and occupancy continuing to fall(-3%and-3ppt).Yangtze River Delta(YRD)also faced pressure(-1%and-2ppt)due to a short wave of new supply and lukewarm leasing appetite,but the region is expected to gradually recover as supply-demand dynamics shift towards a more supportive balance.Mean

6、while,Greater Bay Area(GBA)continued to show resilience(+2%and+3ppt),bolstered by strong take-ups from cross border e-commerce.Ranking for exposure isRanking for exposure is YRD GBA JJJYRD GBA JJJ.In addition to supply,we have identified three key macro trends that will play a definitive role in Chi