(RTTNews) - In an effort to revive the construction sector, China’s central bank and banking regulator are planning to introduce real-estate investment trusts or REITs that allows developers to raise funds.

Qi Ji, China’s vice minister of housing said REITs would help the country’s real estate developers to raise money without depending commercial banks as the primary source of funds.

Buying a house is highly expensive for a large number of Chinese despite a fall in prices. With the introduction of the new plan, the government is aiming to smoothen housing affordability.

China had announced a real estate stimulus package in December to boost the ailing industry. In the next three years, the package is expected to benefit 7.5 million low-income urban families and 2.4 million households living in shantytowns. Houses in rural areas, which are in a dangerously dilapidated condition, would also benefit.

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