Chinese property developers are building extensive investments in the booming new energy vehicles sector. In a move to diversify, real estate companies have pumped more than 10 billion yuan ($1.46 billion) into the NEV industry as they target new growth markets.

Major players, such as Evergrande Group and Vantone Holdings Company, have scaled up their investments amid tighter regulatory procedures in the property sector.

Evergrande Health Industry, a subsidiary of the Evergrande Group, now has a 45% stake in Faraday Future, a start-up in the United States with operating headquarters in China, according to the official Xinhua news agency.

“There are already plans to build five research and development centers, as well as production bases across the country in the next decade,” the state-run Global Times reported.

During the first half of the year, investment in the property market slowed, the National Bureau of Statistics confirmed in a statement last month.

This came at a time when Beijing was still putting together a package of policies to increase competition in the NEV sector.

These will include “new regulations on auto industry investment,” the Economic Information Daily reported, citing sources from the National Development and Reform Commission.

“Developers can invest with controllable costs but the key lies in whether technology innovation can take root,” Yan Yuejin, a research director at E-house China R&D Institute, said. “NEV investment is different from the property industry.

“The former is in the real economy category and relies on technology innovation while the latter has witnessed a ‘land banking’ phenomenon [which developers aggregate parcels of land for future sale or development],” Yan added.