SHANGHAI, March 12 (Reuters) - China's first two public real estate investment products based on commercial retail spaces closed roughly flat after their Tuesday debut, showing investors remain cautious towards property assets and deflationary pressures in the economy.

The two real estate investment trusts listed in Shanghai are backed by shopping centres owned by developer China Jinmao and supermarkets owned by retailer Wumart.

Huaxia Jinmao Commercial REIT and Harvest Wumart Consumer REIT closed up 0.6% and 0.7%, respectively, on Tuesday. They fell as much as 3.8% and 2.8% in early trade.

The launch of such REITs comes after China expanded the scope of REITs last year to commercial properties as part of 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.

The commercial property arms of China Vanke and China Resources Land are also among the project owners of the first batch of approved consumption-related REITs.

"The first batch of commercial REITs are good assets but prices are expensive for investors, especially given the current macroeconomic conditions," said a REITs-focused investment manager at a brokerage firm in Shanghai.

Shopping malls, supermarkets and other retail-focused properties generally come under the so-called consumption-related infrastructure projects.

Fan Qianghua, investment director at Cypress Investment Management Co, said the heavy pipeline of REITs supply had made the firm cautious and they were taking a wait-and-see approach.

After tumbling 28% in 2023, the CSI REITs Index has climbed roughly 8% this year.

Another commercial REIT, backed by China Resources Land, is set to be listed on the Shenzhen Stock Exchange on Thursday. (Reporting by Shanghai Newsroom; Editing by Himani Sarkar)