The government is looking to give a boost to the rental housing market by bringing in new policies that will assist home rental companies raise capital, Caixin Global reports.
China’s securities regulator said in a joint statement with the housing ministry yesterday that new legislation will encourage companies to buy fixed-income securities from rental companies and that a real estate investment trust will be established.
The government hopes that an expanded rental housing market will rein in rapidly-increasing property prices, driven by speculative investment and limited supply.
The statement read “promoting the securitisation of rental housing assets will help revitalise the rental market, improve the efficiency of capital and boost business growth.”