Hongyi Real Estate has successfully invested in China's first data center-focused asset-backed security, enhancing its strategic positioning within the digital infrastructure sector.

Target Information

Hongyi Real Estate has successfully completed the investment in China’s first data center-focused asset-backed security (ABS) under its infrastructure investment fund. The transaction involves the 'CITIC Securities – GDS 2025 No.1 Data Center Holding Property Asset Support Special Plan (Sustainable Linked)', where GDS serves as the original rights holder and China Life Investment acts as the overall coordinator and financing advisor, with CITIC Securities managing the plan. This investment marks a significant step in Hongyi Real Estate's efforts to leverage innovative capital instruments to deepen its engagement in the multi-layered REITs market while enhancing its digital infrastructure investment strategy.

Industry Overview

The digital infrastructure market in China has experienced significant growth and transformation over recent years. As digital demands escalate, the necessity for efficient and high-quality data centers has surged, driven by the rapid evolution of technologies such as cloud computing, artificial intelligence, and big data analytics. This environment presents vast opportunities for investors looking to capitalize on the increasing need for robust digital infrastructure.

China's data center industry, in particular, is undergoing a profound recalibration, with a sharp uptick in both computational power demand and the revaluation of existing assets. Players i