投资中国现代制造工厂

Investing in China’sModern ManufacturingPlants REPORT China’s Manufacturing Transformation and Upgrading The world’s largestmanufacturing base is upgrading This year marks the final phase of “Made in China 2025”; a state-led industrial strategylaunched in 2015 to transform China from a manufacturer of low-cost goods into a globalleader in high-tech manufacturing and innovation. Progress towards achieving this goal has been rapid, with data from the National Bureauof Statistics showing that between 2015 and 2024, China's manufacturing value-addedgrew at an annual rate of 6%. Calculated at current dollar prices, China's share of globalmanufacturing value-added rose from 25.9% in 2015 to 27.7% in 2024. China now stands as the world's largest manufacturing nation. With 41 major industrialcategories, 207 medium-level industrial categories, and 666 minor industrial categories,China is the only country in the world to possess all industrial categories listed in theUnited Nations Industrial Classification. The country continues to pursue industrial upgrading. From 2015 to 2024, the share ofhigh-tech manufacturing in the national industrial output value of enterprises abovedesignated size rose from 11.8% to 16.3%. In the first half of this year, the output value of high-tech manufacturing enterprises above designated size grew by 9.5% y-o-y. In manufacturing sectors such as electric vehicles, shipbuilding, high-speed rail, andbiopharmaceuticals, China has already taken a leading position globally. The country hasalso achieved breakthrough progress in areas such as integrated circuits and industrialrobots. Three key attributes ofmodern manufacturingplant attracting C-REITs Since 2022, China's economy has faced the challenges ofstructural transformation, cyclical fluctuation, and ongoingexternal uncertainty. Consequently, the operational performanceand asset valuations of public C-REITs has experienced amplifiedvolatility, leading to the emergence of divergent trends. During 2022-2024, C-REITs eschewed R&D offices and warehouselogistics properties infavourof modern manufacturing plants,which maintained stable asset valuations and attracted increasinginvestor attention. CBRE believes the enhanced resiliencedemonstrated by modern manufacturing plants primarily stemsfrom three key characteristics: 1. Ability to attract tenants from high-growth industries； 2. Stable and secure lease agreements； 3. Relatively diversified tenant structure Tenants from high-growthindustries: clusters of advanced Information disclosed by the four listed modern manufacturing plant C-REITs shows the composition of their tenants ishighly concentrated in strategic emerging industries and high-tech manufacturing sectors such as automotive,biopharmaceuticals, new materials, information technology, and equipment manufacturing. manufacturingThese industries represent China's manufacturing upgrading and transformation and continue to receive strong supportfrom national and local governments. Their high growth potential and high added-value characteristics help modernmanufacturing plant better withstand risks during economic fluctuations. The Ministry of Industry and Information Technology announced atotal of 80 advanced manufacturing clusters during 2022 and2024, covering key industries such as high-end equipmentmanufacturing, next-generation information technology,biopharmaceuticals, and new energy vehicles. Geographically, the Yangtze River Delta (29 clusters), Beijing-Tianjin-Hebei region (17clusters), and Pearl River Delta (eight clusters) represent the areaswith the highest concentration of advanced manufacturingclusters. These regions also exhibit the strongest demand for high-standard factory buildings and the greatest growth potential. Figure 5: Categories of National Advanced Manufacturing Clusters CBRE has assisted numerous domestic andinternational advanced manufacturing enterprisesin selecting sites for modern manufacturing plantover the past two years Figure 7: CBRE Statistics on Manufacturing Plant Site Selection Commissioned by Clients Over the Past Two Years,Categorisedby Industry Stable and secure leaseagreements Over the past two to three years, average occupancy in modernmanufacturing plant C-REITs’ portfolios has consistentlyremained above 95%, with rents holding largely stable. Modern manufacturing plants’ stable operating cash flow is closely tied totheir long lease terms and high lease renewal rates. Long Lease Terms: Leases for modern manufacturing planttypically span three to five years, with medium-to-large tenantsoften securing terms exceeding five years. Public informationshows that as of Q2 2025, the average remaining lease term for amodern manufacturing plant C-REIT’s portfolio was 2.8 years,eclipsing that for warehouse logistics (2.0 years) and R&D office(2.1 years). High Renewal Rates: Modern manufacturing plant tenantstypically exhibit renewal rates exceeding 80%. This stemsprimarily from su