GDS-SW (09698) experienced a significant surge in stock price, soaring 7.37% in intraday trading. The rally comes on the heels of positive developments in China's Real Estate Investment Trusts (REITs) sector and favorable company-specific updates.

The stock's impressive performance can be attributed to several factors. Firstly, China's National Development and Reform Commission recently issued a notice to improve the application and recommendation process for infrastructure REITs. This development is particularly beneficial for GDS Holdings Ltd, as it accelerates the potential for asset injection and acquisitions. Jefferies analysts highlight that newly listed REITs can now apply for asset injection just six months after their IPO, which has positive implications for both GDS Holdings Ltd and its peer, 21Vianet.

Furthermore, GDS Holdings Ltd has been making strides in its business operations. The company reported improvements in domestic data center utilization rates and increased new contract signings. CITIC Securities noted that the data center industry is experiencing a cycle of supply-demand improvement. Additionally, GDS's international expansion plans through its DayOne initiative, aiming to sign 1GW capacity within three years in Europe and Southeast Asia, have likely contributed to investor optimism. The successful issuance of China's first batch of data center REIT projects further underscores the market's recognition of high-quality digital infrastructure assets, positioning GDS-SW favorably in this growing sector.