China helps developers finance rental projects

BEIJING - China has moved to support the issuance of rental property-backed securities to help finance a burgeoning rental housing market, a crucial part of its planned policy package that aims to stabilize the real estate sector.

The real estate investment trust, a means of property asset securitization, will be piloted for developers to raise funds, according to a Ministry of Housing and Urban-Rural Development and China Securities Regulatory Commission document.

The program will enable companies to reduce their leverage ratio and diversify investment options. Large and mid-tier cities, the Xiongan New Area and some other cities will be the first to get the green light under the pilot program.