China is witnessing a surge in enthusiasm for exchange-traded real estate investment trusts (Reits) backed by commercial properties, with 19 listing applications received by exchanges as of June 24. This development has significant implications for the country's sustainable property market and ESG considerations. The growth of Reits in China is driven by investors' heightened hopes for a market recovery, with lucrative projects offering high returns. The first four Reits backed by commercial properties were heavily oversubscribed and gained value on their first day of trading, raising 20.3 billion yuan (US$3 billion). This oversubscription indicates strong demand from investors seeking regular dividends and stable income generated by the underlying properties. According to CBRE China Research, "Signs are encouraging that more developers will gain access to the financing platform." This increased accessibility can lead to better asset management, reduced vacancy rates, and improved environmental sustainability in the property sector. The emergence of Reits in China signals a positive trend for sustainable development and ESG considerations. As investors increasingly prioritize environmental, social, and governance (ESG) factors, the growth of Reits can help drive more efficient use of capital, reduce financial risk, and promote long-term value creation. With annual returns predicted to be 4.4 to 5.65 per cent, Reits offer a compelling investment opportunity for investors seeking sustainable income streams. As China's property market continues to evolve, the development of Reits can play a crucial role in promoting sustainable development, reducing environmental impact, and supporting the country's ESG goals.