China has plans to launch a 300 billion yuan (US$44 billion) real estate fund to help property developers amid the current debt crisis, a state bank official with knowledge of the matter told Reuters.

Backed by China Construction Bank and the People’s Bank of China, the fund would initially have a size of 80 billion yuan (US$11.8 billion). If the model works, other banks will join in backing the vehicle, expanding the target to 200 yuan to 300 yuan (US$30 billion to US$44 billion).

According to Reuters, the fund will be used to complete unfinished housing projects and rent them to individuals.

Industry experts such as Larry Hu, chief China economist at Macquarie, view the fund as a step towards helping solve the current debt and mortgage crisis, but say it will not be enough on its own.