VNET Group (VNET) saw its stock price surge by 5.14% in Tuesday's pre-market trading following the announcement of a significant financial innovation. The company successfully issued China's first green holding-type real estate Asset-Backed Securities (ABS) in the data center industry, marking a major milestone in green finance and asset securitization for the sector.

The ABS, with an issuance size of RMB 860 million, will be listed on the Shanghai Stock Exchange as a standardized securitized product. This groundbreaking financial instrument allows VNET Group to effectively monetize its existing IDC assets, potentially freeing up capital for technology upgrades, capacity expansion, and M&A integration. The move is expected to improve the company's operational and capital efficiency significantly.

Investors appear to be reacting positively to VNET Group's alignment with China's dual-carbon strategy and ESG investment principles. The ABS received the highest G-1 rating under the green ABS assessment framework from a professional third-party evaluator. This rating underscores the company's commitment to establishing green data center benchmarks by leveraging photovoltaic power generation and AI energy efficiency management.

As VNET Group continues to explore industry-specific financial innovations and advance green and intelligent upgrades in data centers, this successful ABS issuance could pave the way for further growth and market leadership in the rapidly evolving data center industry. The market's enthusiastic response suggests that investors are optimistic about the company's strategic direction and its potential for sustainable, long-term value creation.