CITIC Construction Investment: State-Owned Three-Asset Reform Reshapes Asset Value Focus on Four Major Investment Opportunities

The China Securities Journal APP has learned that CITIC Construction Investment Securities released a research report stating that the reform of state-owned assets, resources, and funds—referred to as the “three assets” reform—is a systematic effort to activate and manage state-owned resources, assets, and capital based on the principles of “assetization, securitization, and leverage.” It has formed a pattern that combines top-level design by the central government with differentiated practices at the local level. The reform highlights common features, with all regions focusing on the core methodology of “confirming rights—confirming value—classified activation.” Relying on market-based tools such as REITs and mergers and acquisitions, a virtuous cycle of “stock activation—capital recovery—reinvestment” has been established to support stable growth and risk prevention.

The reform not only serves as an important support for local debt management but also promotes fiscal shifts from land dependence to asset-driven growth, intensifying regional credit differentiation influenced by resource endowments. At the capital market level, four core investment opportunities are emerging: state-owned enterprise mergers and acquisitions, injection of high-quality assets, revaluation of resource values, and asset securitization products. These are expected to benefit significantly from the value reshaping brought about by the deepening reform.

The four key opportunities to watch are: first, state-owned enterprise mergers and acquisitions, focusing on regional resource integration in utilities, transportation, and other sectors; second, valuation reconfiguration driven by the injection of high-quality assets into listed companies, with particular attention to energy, power, and cultural tourism sectors; third, revaluation of the value of data elements and scarce mineral resources; and fourth, asset securitization products in consumer infrastructure and affordable rental housing, which are expected to benefit from the value release driven by reform deepening. Overall, the three-assets reform is promoting a shift in the management of state assets toward dynamic operation and full lifecycle governance, becoming a key driver of high-quality regional economic development.

CITIC Construction Investment’s main viewpoints are as follows:

The reform of the “three assets” of state-owned resources, assets, and funds involves a systematic activation and management based on the principles of “assetization, securitization, and leverage.” Its core is to activate the existing value through the methodology of “confirming rights—confirming value—classified activation,” leveraging market-based tools to serve macroeconomic goals of stable growth and risk prevention. The policy framework features a top-level design by the central government combined with differentiated implementation at the local level. The central government emphasizes activating existing assets and preventing implicit debt, defining compliance boundaries, while local practices, exemplified by Hubei’s “1+N” policy system, form a systematic advancement framework. The reform has also been incorporated into the key tasks of deepening and improving state-owned enterprise reform.

Local practices show clear differentiation: Hubei integrates the reform into its comprehensive fiscal system, focusing on full-chain activation to support debt management and fiscal revenue; Anhui emphasizes “large assets” with a holistic approach, using unified ledgers and cross-departmental adjustments to improve asset allocation efficiency; Hunan focuses on natural resources and ecological rights assets, using franchise rights models to facilitate value transformation; Guangdong drives reform through data assetization and state-owned enterprise restructuring, deepening industry and capital market linkage; Zhejiang promotes large-scale REITs issuance, building standardized asset exit and reinvestment cycles. Despite different approaches, all regions rely on core tools such as REITs and M&A.

The reform has profound impacts on local economies and debt: it is an important support for local debt management, supplementing debt repayment cash flows through asset activation and optimizing financing structures; it also promotes fiscal shifts from land dependence to asset-driven growth, channeling funds into innovative sectors like science and technology, thereby enhancing fiscal sustainability. Simultaneously, the reform intensifies regional credit differentiation, with resource endowments, policy implementation, and marketization levels becoming key factors in re-evaluating local debt capacity.

At the capital market level, four opportunities are noteworthy: first, state-owned enterprise mergers and acquisitions, focusing on regional resource integration in utilities and transportation; second, valuation reconfiguration driven by high-quality asset injections into listed companies, especially in energy, power, and cultural tourism; third, revaluation of data elements and scarce mineral resources; and fourth, asset securitization products in consumer infrastructure and affordable rental housing, which are expected to benefit from the value release driven by reform deepening. Overall, the three-assets reform is pushing state asset management toward dynamic operation and full lifecycle governance, becoming a vital engine for high-quality regional economic development.