Listed firms seek high yields in realty

Some 1,305 companies listed on the Shanghai and Shenzhen bourses-44 percent of all the A-share companies-have invested a combined 595.1 billion yuan ($88.32 billion) in real estate, as companies seek long-term and stable income, data from analysts revealed on Tuesday.

"For smaller A-share companies that are suffering from (economic) downward pressure, seeking profits and diversifying risks by investing in properties in first- and second-tier cities is a natural choice," said a research note from Sealand Securities Co.

DTZ East China analyst Shen Yun said the average return of Grade A properties in central Shanghai was about 4 percent, and the yield from residential properties could reach 7 percent or higher.