State-led infrastructure financialization: State entrepreneurialism and China’s REITs market

This paper investigates the unique trajectory of the Chinese REITs (C-REITs) market, which diverges from international market-led precedents by prioritizing strategic infrastructure over commercial real estate. Adopting a framework of ‘State-Led Infrastructure Financialization’, we argue that C-REITs represent a new form of ‘state entrepreneurialism’. Through policy analysis and a case study of an energy infrastructure REIT, the research reveals that the state employs ‘selective gating’ strategies to direct capital into the real economy while restricting residential real estate speculation. Findings demonstrate that the state utilizes a unique dual-layer governance structure to maintain control and mandates ‘capital recycling’ to fund the energy transition. We conclude that C-REITs function not merely as financial products but as governance tools, enabling the state to transition from ‘land finance’ to ‘asset finance’. This transition signifies an evolution of state entrepreneurialism from land-based accumulation to asset-based capital recycling.