Real Estate Investment Trusts(REITs) serve as an important instrument for revitalizing existing infrastructure and raising funds for new project development

and also represent an innovative approach to deepening the reform of investment and financing mechanisms and fostering the development of a multi-level capital market. As China enters the stage of regular issuance of REITs and with the successful listing of its first water conservancy REITs—the Yinhua Shaoxing Raw Water Water Conservancy REITs—on the Shenzhen Stock Exchange

the issuance of water conservancy REITs has entered a new phase of development. Focusing on water conservancy infrastructure with water supply functions

this paper draws on the latest requirements for the regular issuance of REITs and the experience of the Yinhua Shaoxing case to analyze the key challenges currently hindering the accelerated rollout of water conservancy REITs. It further proposes targeted recommendations to support and promote the normalization of REITs issuance in the water sector.