An asset-backed note (a type of real estate investment trusts similar to a REIT) project has been launched in the Xiamen Free Trade Zone, with ITG Capital, a subsidiary of ITG Holding Group, working alongside ITG Finance and ITG Real Estate.
But what is this type of product? In simple terms, it's a financial tool that turns high-quality commercial properties, like office buildings or shopping centers, into tradable securities. This helps companies unlock the value tied up in their physical assets, turning them into cash that can be reinvested elsewhere.
The project's core investment platform, Xiamen ITG Jianda Investment Partnership, has registered capital of 4.32 billion yuan ($635.7 million). It brings together institutional and product investors to co-invest, using a flexible "equity plus debt" structure to put capital to work more efficiently — transforming "fixed, heavy assets" into "liquid cash".
The launch of this project opens up a new path for revitalizing existing commercial real estate assets and advancing the development of asset securitization in China.
Xiamen FTZ has been actively partnering with investment institutions on financial innovation and has already invested in two first-of-their-kind funds under ITG Holding: a medical and health merger and acquisition (M&A) fund and an embodied AI venture capital fund. These moves have helped boost key industries in Xiamen, including embodied AI, shipping and logistics, and biomedicine.