SHANGHAI, April 30 Reuters China Vanke39;s first public commercial real estate investment products closed flat on their debut on Tuesday, reflecting caution towards China39;s secondlargest developer amid a prolonged property market downturn.

The CICCSCPG Consumption Infrastructure real estate investment trust REIT listed in Shenzhen fell as much as 3 in early trade before reversing losses by market close. It is backed by shopping centres owned by SCPG Holdings, the commercial property platform of Vanke.

The listing came oneandahalf months after the other three REITs were approved in the same batch. Statebacked Vanke is China39;s secondbiggest property developer by sales and is facing shortterm liquidity pressures and operational difficulties.

Vanke39;s onshore shares have slumped 29 since the start of the year, and are hovering near the lowest levels since 2014.

The launch of such REITs comes after China expanded the scope of REITs last year to commercial properties as part of the efforts to prop up a battered property sector. The REITs would allow investor funds to flow to property owners while also giving developers an opportunity to exit their projects.

Around 3.26 billion yuan 449.88 million was raised via the issuance of this REIT, but the fresh funds are still small compared to Vanke39;s cash burn.

We are concerned by the pace of cash position decline which is at 5.6 billion yuan per month, John Lam, property analyst at UBS, wrote in a note.

With its total…