China is trying to commercialize the housing sector and boost housing sales by setting up housing-related banks, funds, loans and mortgages.

To stimulate home-buying and develop the housing market, it is essential to set up related banks on a trial basis which are authorized to provide financial guarantees, loans and mortgages for home-buyers, said Vice-Minister of Construction Liu Zhifeng. China is in the midst of transforming its subsidized housing system into a commercial housing market, where people buy their own homes.

At present, China is still suffering from slack housing sales, with more than 60 million sq.m. of housing standing idle, said Liu,who attributed the lackluster market to a shortage of funds to purchase houses and high purchase prices.

China's financial departments have cut numerous taxes on real estate transactions, in an attempt to lower the current prices to a rational level, he added.

The vice-minister underlined the importance of strengthening the public housing fund system to boost consumer purchasing power.

China has formed a nationwide public housing fund system, which covers 225 cities at and above the prefecture level and over 500 cities at county level.