GDS Holdings Plunge 6.24% to Month Low as Strategic Pivot to Chinese REIT Faces Scrutiny

The share price fell to its lowest level since the start of this month, with an intraday decline of 6.24%.

GDS Holdings’ recent stock performance has been weighed down by a three-day losing streak, erasing 8.44% of its value over the past week. The decline follows the company’s strategic pivot to monetize legacy assets through a Chinese real estate investment trust (REIT), a move initially praised by investors but now facing renewed scrutiny. The abrdn Global Infrastructure Fund highlighted the REIT listing as a key driver of valuation uplift in Q3 2025, yet the stock’s sharp drop suggests market skepticism about the long-term benefits of asset divestments. Analysts note that while the REIT provided liquidity and transparency, it may have also signaled a shift away from growth-focused capital expenditures in the data center sector.

Broader industry dynamics further complicate the outlook. GDS’s plans to replicate the monetization strategy internationally through a future IPO remain unexecuted, leaving investors to speculate on the timing and potential returns. Meanwhile, global infrastructure funds like abrdn have positioned GDS as a defensive play in a volatile market, contrasting it with underperformers like American Tower. However, the stock’s decline aligns with broader concerns over trade policy risks and geopolitical uncertainties, which have dampened appetite for capital-intensive sectors. The company’s ability to balance asset optimization with reinvestment in high-growth regions like Southeast Asia will likely determine its trajectory amid shifting macroeconomic conditions.