22 April 2026 – Dongfanghong Tunnel Co., Ltd. Expressway Closed-End Infrastructure Securities Investment Fund (the Dongfanghong Tunnel Co., Ltd. Expressway REIT or The REIT) was successfully listed on the Shanghai Stock Exchange. As China’s first publicly offered REIT backed by tunnel assets, it also represents the first operating-rights infrastructure REIT and the first cross-regional asset REIT sponsored by a Shanghai municipal state-owned enterprise, marking multiple milestones in the sector. The offering attracted strong market demand, with a 173.62x subscription multiple in the offline tranche and a 195.63x multiple in the public offering. The effective offline subscription multiple and corresponding capital commitment significantly exceeded the historical peak across all 13 previously listed toll-road REITs. By total subscribed capital, the project ranked second among publicly offered REITs in the PRC market.
The REIT is sponsored by Shanghai Tunnel Engineering Co., Ltd. (Tunnel Co., Ltd.), managed by Orient Securities Asset Management Co., Ltd., with Guotai Haitong Securities Co., Ltd. acting as financial advisor. Its underlying asset is the Qianjiang Tunnel, a critical river-crossing node of the Hangzhou Metropolitan Ring Expressway (G9903), connecting Haining in Jiaxing and Qiantang in Hangzhou, and serving as a key regional transportation artery. With the continued advancement of Yangtze River Delta integration, traffic volume is expected to benefit further from enhanced regional economic collaboration and growing logistics demand.
The infrastructure project is valued at RMB 4.158 billion, with a total offering size of RMB 4.68 billion and a projected initial-year net cash flow distribution rate of 16.63%. The successful listing establishes a replicable “tunnel model” and benchmark for the infrastructure sector, particularly for state-owned enterprises holding large-scale bridge and tunnel assets. It supports state-owned enterprises in developing a light-asset operating cycle of “investment – construction – operation – asset listing – reinvestment”, optimizing capital structures and empowering high-quality urban development.
FenXun acted as legal counsel to the project, providing comprehensive, professional and continuous legal services throughout the process, including due diligence, transaction structure design, preparation of offering documents, and regulatory engagement and response. Working closely with the original equity holder, the fund manager and other relevant parties, the FenXun team delivered tailored legal solutions that supported the project’s timely approval. The team was led by Guangshui Yang, partner at FenXun, with core team members including Wentao Weng, Ke Geng and Xiaodan Yang.
FenXun maintains a long-standing and dedicated public REITs practice, leveraging the firm’s integrated platform to draw on leading professionals from its structured finance, IPO and M&A practices. The firm has advised on multiple infrastructure REITs across asset types including warehousing and logistics, industrial parks, public rental housing, toll roads and wastewater treatment, building extensive end-to-end project experience.
Commenting on the project, Guangshui Yang said: “We are delighted to have supported our valued client Tunnel Co., Ltd. in launching this landmark publicly offered REIT. We extend our gratitude to Tunnel Co., Ltd., Shanghai Infrastructure Construction Development (Group) Co., Ltd., Hangzhou Jianyuan Enterprise Management Partnership (Limited Partnership), Orient Securities Asset Management Co., Ltd. and Guotai Haitong Securities Co., Ltd. for their trust and support. Drawing on our deep expertise in infrastructure and real estate finance, our team identified and addressed core legal and regulatory issues, supporting a robust compliance framework and efficient execution. Looking ahead, we will continue to deliver forward-looking, practical and high‑quality legal services across capital markets, publicly offered REITs, income‑producing real estate ABS, Pre‑REITs and related areas.”