China Construction Bank (CCB) plans to establish a 30-billion-yuan (USD 4 billion) fund to finance rental housing. Notably, rental housing is China’s latest state-backed effort to aid the struggling property sector.

On Friday, CCB said it plans to invest in real estate projects and turn them into affordable rental houses.
Lately, China has been increasing efforts to aid a real estate sector hit by debt buildup, sluggish sales and mortgage boycotts. Property and associated sectors, such as the construction sector, account for more than a quarter of China’s economy.

The concerned authorities have allowed affordable rental houses to be listed as real estate investment trusts (REITs), thereby opening a fresh financing channel for the business. As per the reports, China planned to launch a real estate fund to help property developers resolve a debt crisis. The fund would initially be set at 80 billion yuan through support from China’s central bank, with CCB contributing 50 billion yuan.

Local governments and China’s policy banks have also been establishing funds to help cash-strapped developers finish construction of pre-sold properties as protests by home buyers spread.