China on Friday unveiled plans to expand its public real estate investment trust (REIT) market to include commercial properties, following concerns over the country’s struggling property sector, highlighted by troubles at developer China Vanke.

The China Securities Regulatory Commission published draft rules for a pilot programme of commercial REITs, aimed at “enriching investment and financing tools and supporting a new growth model for the real estate industry.”

The announcement came after Vanke’s bonds and stocks plunged to record lows this week, as the developer sought to delay an onshore bond repayment for the first time, raising fears of broader market spillovers. A day earlier, China’s state planning agency also indicated plans to expand the REIT scheme to include hotels, office towers, and stadiums, alongside existing eligible assets like industrial parks, highways, logistics parks, shopping malls, and data centres.

Expanding the REIT program would allow developers to raise funds more easily while giving public investors access to a wider range of income-generating properties. It remains unclear whether the expansion is a direct response to Vanke’s financial difficulties, which span both residential and commercial assets.

S&P Global downgraded Vanke on Friday, citing the developer’s unsustainable financial commitments and weak liquidity. Analysts warn that a potential debt restructuring of state-owned Vanke could have a larger impact on the fragile market than past defaults by privately-owned giants Evergrande and Country Garden.