AsianFin -- China is turning to its massive 10.9 trillion yuan ($1.5 trillion) housing provident fund to inject new life into its struggling real estate sector, offering homebuyers an alternative to traditional bank mortgages.

The government-run savings program, designed to help individuals purchase homes, is playing an increasingly prominent role as commercial banks grow more cautious amid declining profitability. The fund’s lending activity has now surpassed that of banks, with outstanding loans reaching 8.1 trillion yuan last year — a sign of its rising importance in supporting housing demand.